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JAMES  W.  5.  PETER5 


A  DEMOCRAT  ) 


December  10th,  1909 


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OF   THE 

UNIVERSITY 

Of 


Address  Before  City  Club  December  lOth,  1909 
by  James  W.  S.  Peters. 

The  Metropolitan  Street  Railway  Company  is  claiming  that  the  reason 
it  desires  an  extension  of  its  franchises  at  this  time  is  in  order  to  re-fund 
its  obligations,  in  amount  about  $'26,000,000.  It  also  states  that  unless  this 
proposed  ordinance  is  agreed  to  by  our  people  on  December  16th  it  will 
probably  be  compelled  to  go  into  receivership. 

It  seems  to  me,  from  a  survey  of  the  situation  and  from  a  careful  study 
of  the  "peace  agreement"  under  which  contract  the  Metropolitan  Company 
is  now  acting  in  our  city,  and  of  the  substitute  ordinance  proposed  by  it,  that 
stronger  reasons  even  than  these  alleged  are  In  the  mind  of  the  Metropolitan 
Street  Railway  Company: 

In  the  first  place,  the  proposed  ordinance  extension  absolutely  nullifies 
and  makes  of  no  effect  the  provisions  of  our  Kansas  City  charter  of  1908 
in  reference  to  the  referendum  of  franchise  matters  to  vote  of  the  people. 
The  charter  of  1908  provides  that  all  grants  and  extensions  of  fran- 
chises to  public  utilities  for  over  thirty  years  are  to  be  submitted  to  the 
people,  and  that  grants  of  less  than  thirty  years  may  be  submitted  to  the 
people  on  20  per  cent  petition.  The  Metropolitan,  in.  the  contract  submitted 
has  assuredly  avoided  any  further  vote  on  rapid  transit  matters  after  Decem- 
ber 16,  1909,  until  1951.  Under  the  terms  of  the  proposed  ordinance  the 
franchise  rights  expire  in  1951.  Every  possible  question  in  reference  to 
fares,  extensions,  service,  etc.,  not  absolutely  fixed  in  this  proposed  ordinance 
is  by  contract  itself  vested  in  the  Common  Council.  Not  only  has  the  com- 
pany, in  this  contract,  taken  away  from  the  people  the  right  to  vote  on 
rapid  transit  matters  and  vested  in  the  Common  Council  all  control  of  street 
railways,  but  it  has  also  incorporated  in  the  rapid  transit  ordinance  provi- 
sions in  Section  9  which  give  to  the  street  railway  companies  definite  power 
to  carry  "dairy  products,  vegetables  and  farm  products"  through  the  streets 
Of  our  city.  The  only  restriction  on  this  permission  for  carrying  intercity 
freight,  which  practically  amounts  to  a  franchise  gront,  is  that  this  service 
shall  be  uniform  and  reasonable  and  that  the  city  shall,  by  ordinance,  regu- 
late the  privilege. 

It  is  impossible  at  this  time  to  conjecture  what  value  this  exclusive 
franchise  for  carrying  freight  through  the  streets  of  our  city  may  amount  to 
in  the  next  forty-two  years.  It  is  my  personal  opinion  that  the  value  of  this 
grant  is  liable  to  be  eventually  extended,  by  construction,  in  such  manner 
that  it  will  approximate  in  money  value  the  franchise  to  carry  passengers. 

Under  Sections  19  and  21  of  the  proposed  ordinance  there  are  similarly 
concealed  franchise  grants  in  favor  of  the  Metropolitan  Street  Railway 
Company  which  give  it  the  right  to  furnish  power,  light  and  heat  to  any 
other  individual  or  corporations,  and  permission  is  also  given  to  use  its 
trolley  poles,  wires,  feed  wires  and  conduits  for  this  purpose.  The  terms 
and  conditions  under  which  these  franchises  shall  be  conducted  is,  under 
Section  21,  left  to  ordinance  passed  by  our  City  Council. 

It  is  impossible  to  conceive  any  wording  that  would  more  completely 
embrace  all  future  developments  and  possibilities  of  using  electrical  force 
than  the  permission  to  furnish  power,  light,  heat  and  telephonic  or  other 

206474 


2  Argument — J.  W.  S.  Peters. 

signals  from  its  wires  to  individuals  or  corporations  within  our  city  limits. 
By^ inserting  these  sections  in  this  ordinance  the  Metropolitan  Street  Railway 
may  have  franchise  rights  to  furnish  power,  heat  and  light,  provided  only 
that  the  terms  under  which  it  shall  operate  and  contract  with  these  Indi- 
viduals and  corporations  be  set  out  by  city  ordinance. 

From  these  observations  it  seems  clear  that  the  Metropolitan  Street 
Railway  Company  is  asking  this  proposed  ordinance  in  order  to  have  con- 
ferred upon  it  the  right  to  carry  freight  through  the  streets  of  our  city  and 
to  maintain  a  monopoly  of  every  sort  of  device  or  invention,  or  business 
that  can  be  included  in  the  terms  for  furnishing  power,  light  or  heat  or 
telephonic  or  other  signals  to  our  citizens,  and  if  this  ordinance  does  carry, 
it  will  have  accomplished  this  result,  and  acquired  franchise  grants  for 
forty-two  years,  worth  millions  of  dollars,  without  the  necessity  of  any 
further  referendum  vote  after  December  16th. 

No  wonder  it  can  afford  to  carry  passengers  at  a  fraction  less  than 
at  present  if  we  grant  these  additional  privileges  and  extend  in  addition  H 
a  rapid  transsit  monopoly.  At?*- ^^  oj^tcuLd, 

But  this  acquirement  6f  franchises  is  not  the  only  valuable  concession 
that  it  expects  to  derive  from  this  ordinance.  There  is  deliberately  omitted 
from  this  proposed  ordinance  an  obligation  now  resting  upon  the  Metropoli- 
tan Street  Railway  Company  under  the  Peace  Agreement,  which  omission 
would  more  than  amply  compensate  it  for  the  insignificant  reduction  of 
fares  now  proposed. 

In  Section  8  of  the  peace  agreement  not  only  is  it  expressly  provided 
that  the  Metropolitan  Street  Railway  Company  shall  pave  between  its  tracks 
and  between  the  rails  of  its  tracks,  and  eighteen  inches  outside  of  the  rails 
of  the  tracks  with  the  same  material  as  the  rest  of  the  street  is  paved,  and 
keep  this  space  in  good  repair;   but  it  is  also  expressly  provided  that  it 
"shall  repave  said  spaces  at  the  same  time  the  rest  of  the  street  is  repaved." 
This  last  provision  puts  upon  the  Metropolitan  Street  Railway  Company  a 
definite  obligation  to  repave  which  has  been  purposely   omitted  from  the 
proposed  ordinance,  in  Section  3.     This  is  a  very  important  matter  when 
you  take  into  consideration  the  fact  that  repaving  would  cost  the   Metro- 
politan   Company    over    $20,000    a    mile    for    its    double    trackage.     The 
total   trackage  of  the  Metropolitan  Street   Railway    Company    in    Kansas 
City  is  at  present  about  250  miles  of  single  track,  and  before  the  end  of 
forty-two  years  is  likely  to  be  several  times  that  mileage.     A  great  deal  of 
the  paving  in  our  city,  especially  the  asphalt,  must  be  repaved  in  the  near 
future.     It   is   my   understanding   that  the   contracts   entered   into   by   the 
Barber  Asphalt  Company  for  keeping  in  repair  the  asphalt  pavements  put 
down  by  them  will   expire   in  a  short  time,  and   when  this   obligation   to 
repair  has  expired  it  is  possible  that  all  this  asphalt  space  must  be  repaved. 
By  omitting  this  clause  from  the  proposed  ordinance  requiring  the  street 
railway  company  to  repave  when  the  rest  of  the  street  is  repaved  and  in 
the  same  material,  the  city  will,  for  the  future,  during  the  whole  of  the 
forty-two  years  of  the  proposed  ordinance,  be   powerless  to  do   otherwise 
than  compel  the  street  railway  company  to  keep  in  some  sort  of  repair 
the  kind  of  pavement  now  between  its  tracks.    In  case  at  a  later  date  our 
city   desires   to  pave   its   streets   with   Belgian   blocks   or  other   expensive 
material  and  wishes  the  part  within  the  tracks  of  the  street  railway  com- 
pany and  eighteen  inches  outside  of  the  tracks  to  be  paved  with  the  same 
material,  it  will  be  powerless  to  insist  that  the  street  railway  company  do 
this  paving,  but  will  be  compelled,  if  it  desires  to   have  its  streets  paved 
with  any  uniformity,  to  do  the  paving  on  the  street  car  tracks  at  its  own 
expense,   or   at  the    expense    of   abutting    property    owners.      It   has    been 


Argument — J.  W.  S.  Peters.  3 

expressly  decided  by  tlie  courts  of  our  states  that  the  terms  "paving  and 
repairing"  do  not  include  "repaying,"  and  it  is  hard  to  conceive  that  a 
street  railway  company  would  be  satisfied  continuously  to  keep  up  the 
paving  adjacent  to  its  tracks  without  contention  under  an  obligation  to 
"keep  in  repair."  It  is  possible  that  long  before  the  expiration  of  forty-two 
years  it  will  claim  that  such  work  required  of  it  by  the  city  authorities 
is  not  embraced  in  the  word  "repairing,"  but  is  reconstruction  and  repaving 
for  which  it  did  not  obligate  itself. 

On  December  16th  we  are  asked  to  decide  whether  we  shall  extend  the 
franchise  of  the  Metropolitan  Street  Railway  System  on  the  terms  and 
conditions  incorporated  in  a  proposed  ordinance  submitted  for  our  vote  on 
that  date.  Since  the  submission  of  the  ordinance  to  the  people,  by  criti- 
cisms made  thereof  in  the  newspapers  and  by  public  speakers  opposed  to 
the  ordinance,  so  many  uncertainties  of  construction  have  been  pointed 
out  that  the  directors  of  the  Metropolitan  Street  Railway  Company  have 
thought  it  necessary  to  issue  a  statement  declaring  what,  in  their 
judgment,  the  whole  ordinance  really  means.  In  addition  to  this  the 
Metropolitan  Street  Railway  Company,  in  its  public  placards,  has  declared 
that  all  we  must  do  in  order  to  receive  the  manifold  benefits  of  four 
cent  fares  and  incidental  loaves  of  bread  for  poor  children  is  to  vote  for 
this  ordinance,  and  against  "The  Star."  On  study  of  the  ordinance,  however, 
we  find  a  five  cent  fare  definitely  mentioned  and  provided  for  and  also 
certain  tickets  to  be  sold  six  for  a  quarter  on  the  cars  and  twenty-five  for 
a  dollar  at  twenty-five  places  hereafter  to  be  designated  by  the  street  rail- 
way company.  Scarcely  two  lawyers  in  the  city  have  been  able  to  agree 
exactly  when,  how,  and  under  what  circumstances  these  strip  tickets  are 
to  be  sold,  if  at  all.  Although  the  statement  in  the  car  placards  providing 
that  we  may  vote  for  these  four  cent  fares  only  occupies  one  short  definite 
line  of  print;  the  provisions,  conditions,  and  sub-conditions  and  sub-provi- 
sions in  the  ordinance  describing  how  these  tickets  are  to  be  had  and  when, 
occupies  over  two  pages  of  cloudy  English,  that  can  be  construed  a 
different  way  every  time  you  try  to  rea  them,  and  one  of  many  Construction 
of  sections  1  b  and  1  c,  endorsed  by  some  of  our  able  lawyers,  is  that 
unless  the  citizens  of  Kansas  City  pass  an  ordinance  providing  for  a  bond! 
issue  of  $875,000  to  help  pay  for  the  traffic  way  the  city  will  have  no  right 
to  require  the  companies  to  put  into  effect  any  rates  of  fare  whatever 
mentioned  in  section  1  c,  but,  in  such  case  we  will  continue  paying  the 
five  cent  fare  provided  by  the  peace  agreement  and  expressly  reserved 
in  section  lb. 

Abraham  Lincoln  has  said  that  before  we  can  judge  what  best  to  do 
we  must  first  know  where  we  are,  and  whither  we  are  tending.  Kansas 
City  now  has  a  contract  with  the  street  railway  company  that  does  not 
expire  until  1925.  This  contract  was  entered  into  in  the  year  1903  and  was 
called  the  "peace  agreement"  as  being  a  supposedly  satisfactory  settlement 
of  all  our  street  railway  contentions,  good  until  the  year   1925. 

Under  this  contract  we  have  had  more  than  fair  street  car  service,  ample 
extensions,  and  comparative  freedom  from  attempts  on  the  part  of  the  street 
railway  company  to  dominate  our  council,  but  now  the  company  insists  that 
it  must  have  a  new  deal  in  order  to  raise  money  to  re-fund  bonds,  and  is 
asking  us  to  enter  into  a  contract  binding  ourselves  for  forty-ewo  years  to 
a  fixed  fare  for  that  time  without  any  investigation  whatever  being  made  as 
to  what  sort  of  a  fixed  fare  is  reasonable.  There  has  never  been  any  demand 
except  by  the  street  railway  company  for  a  new  arrangement  and  all  the 
present  hubbub  stirred  up  In  our  community  is  caused  by  the  street  railway 
company   insisting  on   a   new   contract   sixteen   years    before    the    present 


4     .  Argument — J.  W.  S.  Peters. 

francliise  expires.  There  are  two  provisions  in  the  proposed  ordinance  upon 
which  the  company  is  relying  to  obtain  a  majority  of  our  votes.  These 
inducements  are  in  the  alternative.  The  first  is  an  apparent  reduction  in 
fares.  The  second  an  agreement  to  build,  at  its  own  expense,  a  traffic  way 
for  its  joint  use  with  the  city  to  the  West  Bottoms  over  Twelfth  Street. 

This  traffic  way  is  an  absolute  necessity  to  the  Street  Railway  Company 
for  the  electrification  of  its  Twelfth  Street  line  from  Washington  Street  to 
the  West  Bottoms. 

If  the  Street  Railway  Company,  at  its  own  expense,  builds  this  traffic 
way  the  cost  will  be  chargeable  against  the  citizens  in  case  we  ever  decide 
to  buy  the  property,  as  we  may  'do  after  1945.  In  the  meantime  the  Street 
Railway  Company  will  be  able  to  negotiate  bonds  to  an  increased  amount 
equal  to  the  cost  of  construction  of  the  traffic  way  upon  which  increased 
amount  of  bonds  our  citizens  will,  in  one  way  or  another,  find  themselves 
obligated  to  pay  interest.  This  being  true,  it  would  be  as  well  for  the  city  to 
issue  its  own  bonds  to  pay  for  this  traffic  way,  and  charge  the  Railway 
Companies  rental  for  its  use. 

It  certainly  should  be  the  settled  policy  of  every  municipality  to  own 
and  control  at  least  such  part  of  the  street  railway  system  as  constitutes  the 
roadbed  upon  which  the  street  car  tracks  are  laid.  This  is  now  the  policy 
of  Massachusetts  and  New  York  in  reference  to  their  subways  and  tunnels. 
To  this  extent  all  experts  agree  that  municipal  ownership  is  advisable. 

There  is  one  point,  however,  in  connection  with  these  promises  that  the 
Company  fails  to  impress  upon  the  voter.  Under  no  possible  interpretation 
of  the  proposed  ordinance  will  we  obtain  both  of  these  benefits  before  1913. 
It  has  shrewdly  submitted  these  two  propositions  in  the  alternative  in  order 
to  obtain  not  only  the  votes  in  the  West  Bottoms  for  a  traffic  way,  but 
votes  of  those  in  the  South  and  East  part  of  the  city  who  desire  cheap 
fares  at  once  but  care  little  for  the  traffic  way.  The  body  of  citizenship  of 
our  city  demand  above  everything  else  that  we  shall  not  hand  over  for 
an  unconsconcionable  time  to  this  corporation  the  temptation,  and  the 
power  and  the  means  to  rule  our  city  and  control  by  money  its  citizenship 
in  the  future. 

Such  advantages  as  accrue  to  car  riders  on  account  of  the  difference 
between  five  cent  fare  and  the  six  tickets  for  a  quarter  may  be  dearly  bought 
if  we  give  up  our  capacity  to  govern  ourselves  and  leave  an  open  doorway 
for  a  power  that  may  take  away  all  our  independence  in  our  future  city 
administration.  This  has  been  largely  the  case  in  other  cities  when  emerg- 
ing from  the  condition  of  large  towns  into  that  of  metropolitan  cities. 

The  street  car  companies'  cars  have  been  full  of  pathetic  appeals  to  the 
members  of  our  community  asking  their  suffrages.  They  have  called 
attention  to  the  fact  that  the  saving  in  fares  by  buying  tickets  from  them 
at  wholesale  rather  than  retail  rates  will  save  a  loaf  of  bread  a  day  to 
their  children  under  12  travelling  on  the  cars.  (A  married  lady  with  a 
large  family  has  told  me  this  is  a  joke  as  such  children,  as  a  matter  of 
general  practice,  pay  no  fare  now.)  This  appeal  smacks  so  much  of 
hypocrisy  that  we  cannot  help  calling  attention  to  the  fact  that  the  same 
power  which  is  now  promising  these  loaves  of  bread  is  the  power  that 
keeps  up  the  price  of  meat,  eggs,  butter  and  grain,  so  high  that  only  the 
well  to  do  can  afford  to  have  them.  The  reader  of  this  will  perhaps  say  this 
sort  of  an  argument  is  demagogy.  I  admit  it,  but  so,  also,  is  this  penny  loaf 
appeal  used  solely  for  the  purpose  of  diverting  the  unthinking  from  the 
effort  that  this  railroad  company  is  making  to  obtain  something  of  immense 
value  from  our  people,  which  they  can  immediately  pawn  for  $25,000,000, 
and  then   several  million   more  for  general   distribution   among   promoters. 


Argument — J.  W.  S.  Peters.  5 

Kansas  City's  present  contract  with  the  Metropolitan  is  exceedingly 
well  drawn  and  a  complete  document.  Its  legal  machinery  provided  for 
enforcing  its  agreement  and  for  insuring  good  service  and  extensions  and 
the  maintenance  of  fares  established  Is  well  adapted  to  accomplish  results. 
It  certainly  must  be  admitted  that  it  is  better  to  pay  five  cents  fare  and 
obtain  your  money's  worth  than  pay  four  and  a  fraction  cents  for  service 
which  you  cannot  enforce. 

While  the  peace  agreement  provides  for  five  cent  fare,  on  the  other 
hand  there  is  an  agreement  in  that  contract  that  the  company  shall  pay  an 
amount  equal  to  eight  percent  of  its  gross  earnings  to  the  city,  less  an  amount 
equal  to  the  state,  county  and  municipal  taxes,  which  must  be  paid  by  the 
street  railway  company  and  deducted  therefrom.  This  leaves  to  the  city  an 
amount  calculated  on  last  years'  reported  earnings  equal  to  about  $175,000, 
which  goes  the  city's  general  revenue.  If  we  do  not  adopt 
the  proposed  ordinance  this  sum  will  increase  each  year  with 
the  city's  growth  and  in  1925  will  aggregate  several  times  that 
amount  for  the  city's  revenue.  In  the  proposed  ordinance  in  lieu  of  this 
eight  percent  clause  the  company  is  obligated  to  pay  $50  a  car  on  the 
average  number  of  cars  used,  and  also  its  taxes.  As  the  number  of  cars 
used  at  present  is  about  600  the  city's  revenue  will  be  decreased  by  the 
proposed  ordinance   about  $145,000  annually. 

If  you  are  requested  by  a  tenant  to  extend  a  lease,  would  you  not  desire 
to  be  assured  that  you  could  compel  him  to  comply  with  the  terms  of  his 
agreement  before  granting  the  extension  if  he  should  threaten  in  case  you 
refuse  to  ignore  stipulations  in  the  lease  he  already  has?  Would  such  a  threat 
Inspire  your  confidence?  In  other  words,  does  it  not  suggest  that  you  deal 
with  the  street  railway  company  at  arms  length  when  its  placards  in  its 
cars  threaten  that  if  you  do  not  sixteen  years  before  you  need  consider  the 
matter,  grant  its  supplication  for  an  extension  on  its  own  terms  a  refusal 
will  mean  "Poor  car  service  and  the  terrible  condition  of  Detroit,  Chicago 
and  Cleveland."  Before  the  street  railway  company  determines  to  carry 
out  this  threat  it  should  read  the  forfeiture  and  penalty  clauses  of  the 
present  peace  agreement.  Before  this  company  goes  into  the  threatened 
receivership  wherein  bondholders  for  their  own  benefit  will  freeze  out 
stockholders  it  should  call  to  mind  that  courts  of  equity  are  tribunals  into 
which  men  must  come  with  clean  hands  and  that  all  its  books  of  receipts 
and  expenditures,  including  those  of  this  present  campaign,  will  be  laid 
open  for  examination  and  cross-examination.  It  should  also  remember 
that  the  legislature  of  this  state  and  tax  assessors  have  the  right  and  power 
to  re-adjust  taxation  and  that  it  has  solemnly  proclaimed  and  admitted 
that  its  present  assets,  subject  to  the  tax  laws  of  this  state  are  worth 
over  $33,000,000. 

There  are  several  different  methods  under  which  public  utilities  are 
managed  and  controled  in  different  parts  of  these  United  States.  The 
Chicago  plan  is  designated  as  "A  partnership  arrangement,"  wherein  the 
city  shares  profits  with  the  corporation.  Municipal  ownership  of  rapid  transit 
system  at  present  is  more  of  a  hope  than  a  reality  in  our  American  cities, 
although  it  exists  in  France,  Germany  and  England,  and  may  come  in  vogue 
with  us  before  many  years.  Indeterminate  franchises  or  franchises  granted 
on  good  behavior  with  right  of  the  city  to  purchase  practically  at  any  time, 
are  current  in  Massachusetts.  In  New  York  State  a  method  of  regulation  by 
Commission,  to  which  Governor  Hughes  has  contributed  his  influence,  is 
being  worked  out.  All  of  these  different  plans  are  attracting  the  thought 
and  attention  of  experts.  Although  our  form  of  contract  upon  which  we 
are  to  vote  December  16th  resembles  more  the  form  of  contract  in  vogue  in 


6  Argument — J.  W.  S.  Peters. 

the  city  of  Philadelphia,  where  graft,  pure  and  simple,  is  rampant,  the  gnius 
that  constructed  the  plan  put  before  us  deserves  that  it  should  have  a  name 
of  its  own.  I  would  suggest  the  "By-ordinance  Plan,"  for  it  is  constructed  on 
its  obvious  intention  to  restrict  all  future  action  from  now  until  1951  In 
reference  to  rapid  transit  control,  to  action  "by  ordinance,"  without  giving 
the  people  any  possible  chance  of  ever  having  any  more  vote  in  reference  to 
rapid  transit,  freight  transportation  over  our  city  streets  or  furnishing 
power,  light  and  heat  and  telephonic  and  other  signals  to  persons  and  cor- 
porations. It  is  plain  that  the  company  felt  sure  that  such  matters  would 
always  slide  more  easily  through  a  city  council  than  if  the  terms  and  condi- 
tions were  laid  open  to  be  discussed  and  voted  upon  by  citizens  of  an 
educated  and  newspaper-reading  community.  The  street  railway  company  is 
willing  to  let  us  vote  this  one  time  on  all  these  important  matters,  just 
when  we  are  busy  about  Christmas  and  when  25  percent  of  us  are  dis- 
franchised, provided  we  agree  to  be  satisfied  with  this  one  exercise  of  our 
right  of  referendum  and  promise  not  to  demand  another  vote  for  forty-two 
years,  during  which  long  time  we  stipulate  that  all  essential  matters  not 
definitely  arranged  may  be  further  regulated  to  the  company's  satisfaction 
by  ordinance. 

The  company  seems  to  be  content  to  leave  all  future  discretionary 
powers  to  future  councils.  If  the  proposed  ordinance  goes  through,  the  Met- 
ropolitan doubtless  is  of  the  opinion  that  It  will  be  In  such  powerful  position 
in  the  future  and  so  imbedded  into  our  financial  systems  as  to  elect  our 
councils. 

But  then  some  one  objects  that  if  we  turn  this  thing  down  we  will 
have  five  cent  fares  until  1925,  for  under  our  contract  we  can  not  compel 
them  to  reduce  these.  Don't  you  believe  that.  The  people  have  had  this 
low  fare  held  out  to  them  now  by  the  company  as  a  bait.  And  that  they 
will  continue  to  demand  it.  The  Metropolitan  will  not  be  in  any  more 
independent  condition  six  months  or  a  year  from  now  than  it  is  at 
present.  If  we  discover  after  investigation  that  we  made  an  error  in  not 
extending  to  them  at  present  on  their  own  terms  they  will  be  glad  to 
negotiate  with  us  in  the  future  on  the  same  or  better  terms.  But  if,  we 
vote  in  favor  of  this  ordinance  now  and  in  one  or  two  or  a  dozen  years 
hence  find  that  we  have  made  an  error,  we   cannot  rescind  our  contract. 


A  Serious  Argument  to  Democrats. 


y 


This  proposed  ordinance  has  been  passed  by  our  Democratic  council 
and  approved  by  our  Democratic  mayor,  but  I.  as  a  Democrat,  believe  that 
it  is  fundamentally  wrong. 

First.     The  grant  which  we  now  have  has  sixteen  years  yet  to  run  an 
for  as  long  as  forty-two  years,  which  contract  will  be  irrevocable,  whatever 
may  be  the  changes  of  opinion  in  the  future  as  to  the  treatment  of  these 
public  utility  corporations. 

Second.  It  ties  us  down  for  an  indefinite  time  to  a  delusive  fare  proposi- 
tion aggregating  to  the  company  only  a  fraction  of  a  cent  less  than  five 
cents,  notwithstanding  the  fact  that  in  Cleveland,  Detroit  and  elsewhere  it 
is  estimated  that  a  reasonable  charge  for  car  service  is  three  cents  or  less. 
And  the  platform  on  which  our  Democratic  mayor  was  elected  made  the 
same   declaration. 

The  Republican  City  Committee  and  Governor  Hadley  have  come  out 
in  open  opposition  to  this  grant.  The  Democratic  City  Committee,  doubtless 
fearful  of  the  results  to  the  party,  if  they  take  a  stand  either  for  or  against 
an  ordinance  passed  by  the  Democratic  administration,  have,  for  the  present 
at  least,  determined  that  the  matter  is  not  a  party  issue  but  that  each 
Democrat  must,  as  an  individual,  handle  the  matter  to  his  own  satisfaction. 

A  bi-partisan  committee  of  one  hundred  citizens,  made  up  of  both 
Democrats  and  Republicans,  has  been  appointed  at  the  instigation  of  our 
City  Club  to  oppose  the  ordinance  and  is  making  an  active  campaign. 
This  question  of  franchise  grants  by  the  city  is  a  most  momentous  one  now 
to  the  public  morals  of  our  city  governments,  especially  in  light  of  the 
probability  that  all  of  these  public  utilities'  grants  in  the  larger  cities  will 
some  day  be  permitted  by  Republican  administration  to  combine  into  one 
controlling  company,  if  the  Republican  idea  of  fostering  holding  companies 
is  allowed  to  go  to  its  logical  conclusion. 

This  proposed  ordinance  not  only  does  not  increase  our  city's  revenue, 
but  actually  decreases  it  about  one  hundred  and  forty  thousand  dollars  a 
year.  For  a  longer  time  than  the  probable  remainder  of  our  lives  it  also 
precludes  us  from  the  possibility  of  adopting  any  of  the  modern  methods 
of  handling  these  franchise  matters. 

1.  It  precludes  us  from  adopting  a  partnership  plan  like  that  adopted 
by  Chicago  after  twenty  years  fighting,  developed  into  its  present  form 
with  the  advice  and  assistance  of  the  best  scientific  thought  and  expert 
investigation. 

2.  Precludes  us  until  1945  from  any  opportunity,  of  municipal  ownership. 

3.  It  precludes  us  from  owning  our  tracks  and  leasing  them  to  private 
companies  as  prevails  in  Massachusetts  and  New  York.  Under  this  method 
of  management  the  large  tunnels  and  subway  system  and  some  of  their 
surface  lines  are  operated. 

4.  In  case  we  hereafter  discover  that  the  rates  fixed  in  this  ordinance, 
which  amount  in  practical  working  to  about  four  and  one-half  cents  for  each 
passenger  is  exhorbitant,  we  have  precluded  ourselves  from  reducing  this 
cost  of  service  either  by  city  ordinance  or  through  regulation  of  locally 
appointed  or  State  Public  Service  Commission.  It  would  certainly  seem  to 
beilladvised  to  tie  ousel veg  down.aQw  without  any  scientific  investigation 


8  Argument — J.  W.  S.  Peters. 

into  the  question  of  reasonable  rates  to  a  long  time  franchise  fixing  fares 
at  more  than  fifty  percent  greater  than  a  three-cent  charge. 

5.  This  proposed  ordinance  precludes  us  from  adopting  one  of  the 
most  valuable  features  of  the  Public  Service  Commission  as  exist- 
ing in  New  York,  which  is  the  supervising  and  controlling  of  issuance 
of  stocks  and  bonds  by  public  utilities  corporations.  It  is  evident  that  this 
is  the  fact  when  we  consider  that  the  ordinance,  by  its  terms,  as  a  matter 
of  contract,  restricts  the  city,  in  section  24,  to  such  rights  and  powers  of 
regulations  and  control  as  exist  at  the  time  of  the  making  of  this  contract. 
And  furthermore  restricts  the  city  to  make  such  regulations  only  by  ordi- 
nance, and  confines  its  administration  of  such  regulations  to  a  bureau  of 
local  transportation  or  some  employee  of  the  city.  Just  what  further  rights 
and  powers,  vested  in  the  New  Yorkk  Public  Service  Commission,  are  con- 
tacted away  by  this^  proposed  franchise  extension  ordinance  can  only  be 
determined  by  taking  the  Public  Utilities  Act  of  New  York,  section  by  sec- 
tion, and  interpreting  it  in  connection  with  our  proposed  ordinance  taking 
for  granted  that  such  regulations  as  exist  in  New  York  cannot  be  used  by 
us  hereafter  if  there  is  anything  in  this  proposed  ordinance  conflicting  there- 
with. 

Just  which  of  these  suggested  methods  we  as  citizens  of  Kansas  City 
and  individuals  may  later  choose  is  not  an  issue  to  be  fought  out  until  after 
December  16.  It  behooves  all  who  favor  any  of  these  plans  to  unite  for  the 
one  purpose  of  defeating  this  proposed  ordinance. 

The  advocates  of  the  ordinance,  in  answer  to  all  the  above  objections, 
raise  the  point  that  under  the  contracts  now  existing  between  the  city  and 
the  street  railway  company  there  is  a  fare  fixed  until  1925,  at  five  cents, 
and  that  we  cannot,  even  if  we  desire,  reduce  this  fare  except  by  consent  of 
the  street  railway  company.  The  opponents  of  the  proposed  extension  must 
admit  that  this  is  a  true  construction  of  the  law,  but,  the  street  railway 
company  insists  that  under  the  present  contract  it  is  absolutely  impossible 
for  them  to  finance  themselves  and  to  refund  their  indebtedness  coming 
due,  aggregating  $25,000,000,  but  state  that  if  we  give  them  the  contract 
right  contained  in  the'  proposed  ordinance,  extending  their  privileges  twenty- 
five  more  years  on  altered  terms  they  will  immediately  be  able  to  raise  this 
large  sum  of  money  to  conduct  their  business.  It  therefore  comes  to  us 
as  suppliants  asking  for  an  entirely  new  deal  beginning  now  and  ending 
forty-two  years  from  now,  giving  them  practically  exclusive  control  of  our 
city  transportation  for  that  time.  In  common  fairness  to  both  parties  then. 
when  asking  for  these  concessions  which  it  admits  are  of  immense  value, 
it  should  on  its  part  ask  of  us  only  such  fare,  beginning  now  and  continuing 
during  the  life  of  our  grant,  as  is  certainly  reasonable,  and  under  such 
terms  and  conditions  as  experts  all  over  the  country  advise  to  be  incorpor- 
ated in  the  contract  in  order  that  the  city  and  its  citizens  shall  have  reason- 
able control  over  the  corporation  exercising  the  public  utility  in  their  city 
limits. 

It  seems  to  me  that  the  political  issue  in  this  case  has  boiled  down 
to  the  following  question:  Whether  the  Democratic  administration  is  acting 
in  good  faith  and  in  accordance  with  its  solemnly  pronounced  party  pledges. 
or  whether  for  the  benefit  of  the  monied  corporation  regardless  of  the 
recognized  restrictions  that  should  hedge  about  a  grant  of  this  character. 
If  it  is  not  a  party  question  then  it  had  no  business  being  incorporated  in 
all  our  recent  Democratic  platforms  upon  which  our  representatives  were 
carried  into  official  positions,  unless  we  write  platforms  for  the  mere  purpose 
of  catching  votes  and  -^ith  no  intention  of  meaning  anything  therpby.  Sor»<=^ 
of  us  Democrats  think  that  the  Democrats  as  a  party  ou^ht  to  . repudiate* 
thlB  ordinance  and  not  permit  the  Reji^ubUoana  to  pre-empt  thi©  evident 
moralities  of  the  situation. 


ARGUMENT-— J.  W.  S.  Peters. 


A  Question  of  Fair  Dealing. 


It  does  not  seem  to  me  that  the  Metropolitan  Street  Railway  Company  has 
treated  the  citizens  of  our  community  with  such  good  faith  as  should  ob- 
tain between  a  public  utility  corporation  rendering  us  service  in  an  Important 
matter  like  rapid  transit  and  the  citizens  of  our  city  who  are  its  patrons  and 
upon  whose  good  will  it  must  subsist.  It  will  be  remembered  by  all  of  our 
citizens  that  during  the  campaign  following  which  our  present  Mayor  Crit- 
tenden and  the  present  city  council  were  elected  the  Metropolitan  Street 
Railway  Company  gave  active  assistance  to  the  Democratic  members  of  our 
administration.  The  Street  Railway  Company  did  not  at  time  time  in  any 
way  intimate  that  it  would  be  necessary  for  it  to  ask  for  any  extension  of 
its  franchises  during  this  administration,  notwithstanding  the  fact*  that  it 
must  then  have  known  what  it  does  now,  that  it  would  be  necessary  for  it 
in  the  near  future  to  refund  its  bonds,  which  they  state  aggregate  some- 
thing like  $26,000,000.  The  Democrats  at  whose  election  they  actively  as- 
sisted were  elected  on  a  platform  distinctly  stating  that  three  cent  fare  was 
ample  for  a  street  railway  company  to  charge,  and  such  a  fare  that  the 
street  railway  company  could  not  only  pay  running  expenses,  but  good  in- 
terest on  a  reasonable  amount  of  bonds  issued  by  it.  In  fact  upon  its  actual 
investment.  The  Street  Railway,  shortly  after  the  present  administration 
came  into  office,  began  actively  to  obtain  an  extension  of  its  present  fran- 
chises, and  there  was  drawn  up,  after  consultation  covering  several  months, 
between  the  Street  Railway  Company  officials  and  our  city  officials  an  ordin- 
ance based  upon  the  Chicago  plan,  offering  to  share  profits  on  the  terms 
therein  stated,  between  the  Street  Railway  Company  and  our  City.  This  or- 
dinance received  the  approval  of  both  our  Mayor  and  ihe  Street  Railway 
Company  and  was  printed  and  published  and  spread  abroad  among  the  citi- 
zenship as  being  a  contract  that  would  be  of  great  advantage  to  our  City. 
This  contract  was  placed  in  the  cars  of  the  Railway  Company  and  furnished 
to  our  citizens  for  their  study  and  approval.  Suddenly,  und  without  any 
apparent  good  reason  this  contract  was  withdrawn  and  lieu  thereof  the 
present  contract  was  hurriedly  put  into  shape  and  rushed  through  the  Com- 
mon Council  without  giving  the  citizens  a  chance  to  catch  their  breath 
or  investigate  or  complain,  before  the  thing  was  actually  appoved  by  the 
.Mayor.  It  is  now  being  submitted  to  only  a  fraction  of  those  of  our  citizens 
who  would  be  entitled  to  vote  thereon  if  it  had  been  set  for  some  time  when 
they  might  have  opportunity  to  register  for  this  important  matter  involving 
method  of  management  of  our  rapid  transit  system  until  1951.  The  date  set 
for  the  election  is  only  a  week  before  Christmas  at  a  time  when  the  majority 
of  our  citizens  are  engaged  in  either  preparing  for  social  festivities  or  In 
getting  together  their  books  and  accounts  for  report  at  the  end  of  their 
current  business  year.  No  more  inopportune  time  or  one  less  likely  to 
bring  out  votes  of  any  save  those  financially  interested  in  putting  this  mat- 
ter through  could  possibly  have  been  advised  by  the  shrewdest  legal  experts 
of  Chicago  or  Philadelphia.  The  fact  that  twenty-five  per  cent  of  our  citi- 
zens are  disfranchised  from  the  opportunity  of  voting  upon  this  proposition 
by  our  city  administration  acting  in  conjunction  with  the  Metropolitan 
Street  Railway  Company  should  be  enough  reason  for  deferring  this  matter 
until  we  can  give  our  whole  citizenship  opportunity  to  express  themselves  in 
reference  thereto, 


10  Argument — J.  W.  S.  Peters. 

Public  Service  Regulation. 

There  is  another  very  strong  motive  that  doubtless  had  a  great  part  in 
impelling  the  Metropolitan  Street  Railway  Company  to  ask  for  readjustment 
of  their  contract  rights  at  this  time,  and  the  definite  fixing  of  its  rates  im- 
mediately, thus  giving  it  opportunity  to  negotiate  bonds  at  once.  At  the 
last  session  of  the  Legislature  Governor  Hadley  and  some  of  the  State 
Legislators  were  actively  urging  for  adoption  by  the  Legislature  a  bill  pro- 
viding for  a  state  commission  something  similar  to  the  commissions  now 
existing  in  New  York,  Massachusetts  and  Wisconsin,  which  states  have 
state  supervision  not  only  over  railroads  proper  but  also  steet  rail- 
ways and  public  utilities  generally.  It  is  also  probable  that  this  same  bill 
will  be  actively  urged  at  the  next  session  of  the  Legislature  not  only  by  Re- 
publicans but  also  by  a  large  contingency  of  Democrats  of  our  State. 

In  the  New  York  Public  Service  Commission  Act  which  became  a  law 
June  6th,  1907,  and  was,  in  a  great  part,  the  work  of  Governor  Hughes  of 

Fearing  that  such  legislation  now  in  vogue  in  these  progressive  States 
and  gaining  favor  all  over  the  United  States,  the  Street  Railway  Company 
wishes  to  forestall  the  possibility  of  such  a  commission  by  obtaining  its 
extension  and  issuing  its  bonds  before  it  can  be  compelled  to  submit  its      q 
prospective  bond  issue  to  approval  of  such  a  commission,  ^-z^i^ttju  -St^AX.  <f%. 
New  York,  41  lb  pimild<.d  that  it  hhall  have  the  right  to  nprrnvp  tho  ifiauaBcc     ' 
tA.  »tui!k,  liUu<ib  and  othci  fU'iiiiA  uf  indnblLdnuiuu;  the  terms  and  conditions 
of  such  approval  appear  in  section  55  of  that  Act,  and  are  as  follows: 

"A  common  carrier,  railroad  corporation  or  street  railroad 
corporation  organized  or  existing,  or  hereafter  incorporated,  un- 
der or  by  virture  of  the  laws  of  the  State  of  New  York,  may  is- 
sue stocks,  bonds,  notes  or  other  evidence  of  indebtedness  pay- 
able at  periods  of  more  than  twelve  months  after  the  date  there, 
of,  when  necessary  for  the  acquisition  of  property,  the  construc- 
tion, completion,  extension  or  improvement  of  its  facilities,  or 
for  the  improvement  or  maintenance  of  its  service  or  for  the 
discharge  or  lawful  refunding  of  its  obligations,  provided  and  not 
otherwise  that  there  shall  have  been  secured  from  the  proper 
commission  an  order  authorizing  such  issue,  and  the  amount 
thereof  and  stating  that,  in  the  opinion  of  the  commission,  the 
use  of  the  capital  to  be  secured  by  the  issuance  of  such  stock, 
bonds,  notes  or  other  evidence  of  indebtedness  is  reasonably 
required  for  the  said  purposes  of  the  corporation,  but  this  pro- 
vision shall  not  apply  to  any  lawful  issue  of  stock,  to  the  law- 
ful execution  and  delivery  of  any  mortgage  or  to  the  lawful 
issue  of  bonds  thereunder,  which  shall  have  been  duly  ap- 
proved by  the  board  of  railroad  commissioners  before  the 
time  when  this  act  becomes  a  law.  For  the  purpose  of 
enabling  it  to  determine  whether  it  should  issue  such  an 
order,  the  commission  shall  make  such  inquiry  or  investigation. 
hold  such  hearings  and  examine  such  witnesses,  books  pa- 
;;'-;pers,  documents,  or  contacts  as  it  may  deem  of  im- 
^  -  ''T)ortance  in  enabling  it  to  reach  a  determination.  Such  common 
,-  -carrier,  railroad  corporation  or  street  railroad  corporation  may 
isftue  notes,  for  proper  corporate  purposes  and  not  in  violation  of 
any  provision  of  this  or  any  other  act,  payable  at  periods  of  not 
more  than  twelve  months  without  such  consent,  but  no  such  notes 
shall,  in  whole  or  in  part,  directly  or  indirectly  be  refunded  by 


Argument — J.  W.  S.  Peters.  11 

any  issue  of  stock  or  bonds  or  by  any  evidence  of  indebtedness 
running  for  more  than  twelve  months  without  the  consent  of  the 
proper  commission.  Provided,  however,  that  the  commission 
shall  have  no  power  to  authorize  the  capitalization  of  any 
franchise  to  be  a  corporation  or  to  authorize  the  capitalization 
of  any  franchise  or  the  right  to  own,  operate  or  enjoy  any  fran- 
chise whatsoever  in  excess  of  the  amount  (exclusive  of  any  tax 
or  annual  charge)  actually  paid  to  the  state  or  to  a  political  sub- 
division thereof  as  the  consideration  for  the  grant  of  such  fran- 
chise or  right;  nor  shall  the  capital  stock  of  a  corporation  form- 
ed by  the  merger  or  consolidation  of  two  or  more  other  corpor- 
ations, exceed  the  sum  of  the  capital  stock  of  the  corporations 
so  consolidated,  at  the  par  value  thereof,  or  such  sum  and  any 
additional  sum  actually  paid  in  cash;  nor  shall  any  contract  for 
consolidation  or  lease  be  capitalized  in  the  stock  of  any  cor- 
poration ohall  ewn  or  oporato  ito  linoc  in  both  dietriotc  it  obaH 
any  bonds  against  or  as  a  lien  upon  any  contract  for  consolida 
tion  or  merger.  Whenever  it  shall  happen  that  any  railroad  cor 
poration  shall  own  or  operate  its  line  in  both  districts  it  shall, 
under  this  section,  apply  to  the  commission  of  the  second  dis- 
trict. Whenever  it  shall  happen  that  any  street  railroad  cor- 
poration shall  own  or  operate  its  lines  in  both  districts,  it  shall, 
under  this  section,  apply  to  the  commission  of  the  first  district. 
Any  other  common  carrier  not  operating  exclusively  in  the  first 

district  shall  apply  to  the  commission  of  the  second  district." 
This  power  given  to  the  public  service  commission  to  superintend  the 
issuance  of  bonds  is  a  very  valuable  and  important  method  of  preventing 
over-capitalization  and  over  issue  of  bonds.  Unless  some  such  inspection 
by  a  public  utilities  commission  is  provided  for  we  will  in  the  future  find 
ourselves  in  even  more  embarrassment  than  we  do  at  the  present  in  the 
matter  of  treatment  •  of  bonds  outstanding  by  our  rapid  transit  Company. 
By  permitting  an  excessive  amount  of  bonds  to  be  issued  to  our  citizens, 
and  to  others  outside  our  city,  upon  rapid  transit  properties,  even  if  we  do 
not  legally,  still  we  do  equitably  and  morally  sanction  this  over-bonding 
time  grant  to  the  Street  Railway  what  it  is  now  asking,  we  may  in  the 
future  deprive  stockholders  of  expected  dividends  and  bondholders  of  inter- 
est and  subject  ourselves  to  the  very  criticism  and  complaint  that  is  now 
raised  against  us  for  not  protecting  local  investors. 

When  an  issue  of  bonds  is  sent  forth  by  a  Public  Utilities  Commission 
the  public  believes  and  has  cause  to  believe  that  it  represents  security  based 
upon  actual  valuation  and  that  there  is  strong  probability  that  interest  will 
be  paid  provided  ordinary  good  management  and  foresight  are  used  by  the 
company.  No  more  desirable  result  could  be  obtained  than  tha't  the  holder  of 
stocks  or  bonds  should  be  protected  by  the  the  approval  of  such  a  commis- 
sion, and  be  able  to  feel  that  the  stocks  or  bonds  represent  actual  valuation, 
and  that  the  interest  or  dividends  thereon  will  always  be  forthcoming  and 
a  fair  return  upon  the  stock  or  bonds,  barring  mismanagement  and  mis- 
judgment  on  the  part  of  the  Company. 

The  Public  Service  Commission  in  the  City  of  New  York,  in  considering 
its  powers  in  this  examination  of  stock  and  bond  issues,  has  decided, 
first:  The  public  service  commission  law  applies  to  plans  for  the  re- 
organization of  corporation,  and  that  securities  issued  in  such  cases  mast 
be  approved  by  the  Commission  in  order  to  be  legal;  Second.  The  function 
of  the  Commission  in  such  cases  is  administrative  and  not  ministerial. 
Stock  and  bond  issue  should  be  approved  only  after  careful  and  exhaustive 


12  Argument— J.  W.  S.  Peters. 

Investigation.  The  Commissoon  should  also  be  convinced  that  the  Interests 
of  the  public  are  not  menaced  and  that  the  welfare  of  this  corporation  will 
be  improved  theeby.  Third:  The  capitalization  of  franchises  will  not  be  al- 
lowed, directly  or.  indirectly,  except  so  far  as  permitted  by  statute.  Fourth: 
In  the  absence  of  proof,  the  Commission  will  not  approve  the  issuance  of 
bonds  or  stock  where  the  assets  and  property  are  not  of  suflacient  value  to 
justify  the  capitalization,  for  no  reorganization  can  be  sound  or  permanent 
unless  the  capitalization  has  some  relation  to  the  value.  Fifth:  The  Commis- 
sion does  not  permit  the  issuance  of  bonds  in  such  amount  that  it  will  be 
probable  that  fair,  adequate  interest  and  dividends  will  not  be  earned  there- 
on. The  Commission  holds  that  this  is  without  justification,  is  dangerous 
financiering,  and  injurious  to  the  public.  The  Commission  also  holds  that 
extreme  capitalization  leads,  as  it  has  always  done  in  the  past,  to  Inferior 
service  and  unwarranted  exactions  and  states  that  the  people  of  New  York 
have  too  vivid  evidence  upon  thl^  point  to  forget  Its  Importance. 


Argument — J.  W.  S.  Peters.  13 


The  Receivership  Question. 


Suppose  the  Company  does  carry  out  its  threat  of  going  Into  pecciver- 
ship  in  case  we  refuse  to  take  orders  from  it. 

What  do  the  Law  books  say? 

The  maintenance  and  use  of  the  property  and  franchise  of  a  railroad 
in  the  hands  of  a  receiver  with  a  view  to  the  public  convenience  is  proper. 
Miltenberger  vs.  Logansport  C.  C.  &  S.  W.  Ry.  Co.  106  U.  S.  286. 

The  public  have  rights  in  a  railroad  with  which  the  creditor  or  mortg- 
agee cannot  interfere.  A  court  of  equity  ought  in  most  cases  to  authorize  a 
receiver  of  railroad  property  to  keep  it  in  repair  and  operate  it  so  that  the 
public  may  not  su....er  from  a  disuse  of  the  franchise.  Barton  vs.  Barbour, 
104  U.  S.  126. 

Power  of  a  court  to  transfer  the  property  of  a  street  railway  company  in 
the  hands  of  receivers  to  a  reorganization  company  by  lease,  operating  agree- 
ment or  otherwise.  Guaranty  Trust  Co.  vs.  Chicago  N.  Traction  Co..  158 
Fed.  913. 

The  receivers  of  a  street  railroad  company,  in  operating  the  property 
of  such  road,  must  first  consider  the  traveling  public.  The  service  already 
performed  by  the  roads  must  be  kept  up  and  improved  so  far  as  may  be. 
Directions  of  the  Public  Service  Commission  should  be  carried  out  by  the 
receivers  so  far  as  the  income  from  operating  the  roads  will  permit.  The 
receipts  should  be  devoted  first  to  maintenance  and  to  operation.  Next  are 
certain  fixed  charges  such  as  rentals,  interest  on  bonds,  etc.  Pennsylvania 
Steel  Co.  vs.  N.  Y.  City  R.  C,  157  Red.  440. 

The  assumption  of  the  control  of  a  railroad  by  a  court  through  a  re- 
ceiver devolves  upon  that  court  a  duty  to  the  public  in  the  continued  opera- 
tion of  the  road.  Townsend  vs.  Oneonta  C.  &  R.  S.  R.  Co.,  88  App.  Div.  (N. 
Y.)   84  N,  Y,  Sup.  427. 

The  effect  of  the  appointment  of  a  receiver  for  a  railroad  corporation  is 
simply  to  give  him  the  temporary  management  of  the  railroad,  under  the 
direction  of  the  court,  instead  of  the  manager  appointed  by  the  directors  of 
the  corporation.     Ohio  &  M.  R.  Co.  vs.  Russell,  115  111.  52. 


WHY  NOT? 

In  a  matter  as  important  as  the  definite  fixing  of  fares 
for  forty-two  years — which  being  a  contract  we  cannot 
avoid  if  some  court  in  its  interpretation  gives  us  the  worst 
of  it— there  is  no  excuse  for  adopting  a  provision  concern- 
ing fares  and  ticket  arrangements  so  subject  to  conditions, 
provisions  and  varying  interpretations  as  is  this  verbose 
Section  Ic  "Subject  to  Section  lb."  Let's  have  this  thing 
rewritten  so  that  everybody  who  can  understand  English 
can  figure  out  definitely  what  it  really  does  mean.  The 
Company  claims  we  get  four-cent  fares — let's  make  them 
write  it  in  the  ordinance  and  not  in  their  card  placards; 
and  so  clearly  that  there  is  no  need  of  the  Kansas  City 
Post  guaranteeing  it  to  us,  or  the  Metropolitan  interpret- 
ing its  meaning  for  us.  We  have  sixteen  years  to  rewrite 
a  good  contract.  It  will  take  us  forty-two  years  to  live 
down  this  bad  one. 


And  now  the 
'^Kansas  City  Post" 
agrees  to  guarantee  us 
four  cent  fares. 

We  still  are  of  the 
opinion  that  it  should 
be  so  written  in  the 
Ordinance. 


Mr.  O.  H.  Dean,  one  of  our  leading  Democrats,  has 
permitted  me  to  print  the  following  letter  written  to  me 
as  Secretary  of  the  Committee  of  One  Hundred: 


Gentlemen  of  the  Committee: — You  request  me  to 
give  expression  of  my  views  concerning  the  proposed  ex- 
tension of  the  franchise  of  the  Metropolitan  Street  Rail- 
way Company.    This  I  am  pleased  to  do. 

To  begin  with,  I  am  not  only  willing,  but  I  am  con- 
vinced, that  that  Company  should  have  an  extension  of 
its  franchise,  provided  it  is  so  written — and  it  can  be  so 
written — that  the  interests  of  our  City  will  be  protected. 
I  want  the  Company  to  have  such  a  franchise  that  it  will 
get  back  every  dollar  actually  invested  in  that  property, 
with  good  interest;  and  by  this  I  mean  more  than  six 
per  cent,  whether  the  investment  is  represented  by  bonds 
or  stock.  Every  investor  in  that  property  is  entitled  to 
be  well  compensated  for  the  risks  he  has  taken,  and  we 
cai:inot  afford  to  treat  him  otherwise.  It  is  quite  certain 
that  the  original  investments,  with  a  fair  income  thereon, 
cannot  be  gotten  back  in  sixteen  years,  and  at  the  same 
time  charge  reasonable  fares  and  give  the  present  trans- 
fers, and  continue  to  discharge  the  many  other  obliga- 
tions, including  necessary  extensions,  paving,  lighting 
and  the  furnishing  of  watchmen  at  crossings  and  other 
like  obligations.  I  have  so  expressed  myself  heretofore, 
and  this  is  my  present  view  on  the  subject. 

But  I  am  opposed  to  the  proposed  franchise.  It  does 
not  protect  the  interests  of  Kansas  City  in  many  essential 
features.  Should  it  be  granted  the  City  will  be  very  much 
worse  off  than  it  now  is,  and  this  for  a  very  long  period 
of  time.  The  City  should  get  something  for  the  property 
it  leases  to  the  Street  Railway  Company.  It  furnishes  it 
a  place  to  do  business  on,  just  as  it  furnishes  to  the 
men  at  the  market  house  stalls  or  places  for  their  busi- 
ness. The  right  of  way  given  to  that  Company  over 
several  hundred  miles  of  the  principal  streets  of  our  City 


Lette*  of  O.  H.  Dean.  17 

is  something  of  very  great  value,  especially  in  the  down- 
town streets. 

The  man  or  corporation  that  does  business  on  the 
abutting  property  must  either  buy  the  property  and  pay 
taxes  and  insurance,  or  he  must  pay  rent.  The  Street 
Railway  Company,  under  the  proposed  franchise,  pays 
nothing  and  will  pay  nothing. 

The  Gas  Company,  the  Electric  Light  Companies, 
Telephone  and  other  companies  pay  for  their  occupation 
of  the  streets,  overhead  or  underground,  to  the  amount 
of  2  per  cent  of  their  respective  gross  earnings — a  rea- 
sonable charge.  The  Street  Railway  Company  will,  for 
forty-two  years,  pay  nothing.  It  pays  a  small  license  tax 
on  the  average  number  of  cars  it  uses  on  the  streets, 
as  the  drayman  or  other  owners  of  vehicles  pay;  but  it 
pays  nothing  for  its  tracks,  switches,  curves  and  other 
uses  to  which  it  puts  the  property  leased  to  it  Dy  the  City. 

Under  its  present  contract  it  pays  8  per  cent  of  its 
gross  earnings  to  the  City,  after  deducting  state,  county 
and  school  tax.  This  is  a  progressive  arrangement 
secured  by  the  peace  agreement,  and  as  its  income  in- 
creases the  income  of  the  City  also  increases.  This  is  to 
be  cast  aside  and  $33,000,000  worth  of  property,  accord- 
ing to  the  figures  of  that  Company  occupying  the  prop- 
erty owned  by  the  City,  will  get  nothing  hereafter,  ex- 
cept what  the  City  may  get  from  a  board  of  taxation 
sitting  at  Jefferson  City,  over  which  the  City  will  exer- 
cise no  control  and  very  little  influence.  It  is  the  same 
taxing  board  which  assesses  the  railroads  and  other  street 
railways  throughout  the  state;  and  we  may  recur  to  the 
conditions  which  existed  heretofore  when  our  Street 
Railway  Company  paid  practically  nothi  ig  towards  the 
expense  of  maintaining  our  City  government  and  our 
schools. 

The  greatest  asset  of  the  Street  Railway  Company  is 
the  right  of  way  given  to  it  by  our  City.  The  steam 
railroads  pay  millions  of  dollars  for  their  rights  of  way 
over  private  property  to  get  into  our  city;  but,  under 
this  proposed  franchise,  the  City  gets  nothing  for  its 
property.  Und**r  the  existin^^  arran2:ement,  should  the 
City  continue  its  present  growth,  it  will  get  on  an  aver- 


18  Letter  op  O.  H.  Dean. 

age  of  nearly,  if  not  altogether,  $400,000  each  year  for  the 
next  sixteen  years,  according  to  the  report  of  the  ac- 
countants, Young  &  Company.  This  we  are  throwing 
away. 

We  are  told,  however,  that  while  the  City  as  such  is 
losing  from  its  revenues  these  enormous  sums  of  money, 
the  public  is  getting  it  back  in  reduced  fares.  I  do  not 
look  at  it  in  this  way.  I  think  I  am  wholly  right  in  say- 
ing that  the  proposed  matter  of  selling  tickets  six  for  a 
quarter  or  twenty-five  for  a  dollar  will  not  prove  seri- 
ously unprofitable  to  the  Street  Railway  Company.  A 
good  many  years  ago  a  mule-car  line  in  this  City  sold 
tickets  on  that  basis,  on  the  theory  that  it  increased  the 
income  of  its  property.  I  think  experience  has  demon- 
strated that  it  is  a  good  business  arrangement  for  the 
Street  Railway  Company  to  sell  tickets  in  that  way.  To 
be  very  conservative  in  my  statement,  at  least  the  dif- 
ference between  what  the  Street  Railway  Company  will 
get  under  the  proposed  arrangement  and  what  it  is  now 
getting  would  be  very  small,  and  will  be  no  compensation 
for  what  we  are  asked  to  give  to  the  Company  for  forty- 
two  years. 

The  steam  railroads  are  accustomed  to  sell  round- 
trip  tickets  at  a  reduction  of  10  per  cent,  and  often  much 
more.  Where  they  have  been  authorized  for  years  to 
exact  a  three-cent  fare  per  mile,  they  have  been  accus- 
tomed to  sell  tickets  in  books  at  two  cents  a  mile.  The 
suburban  railroads,  adjacent  to  all  of  our  large  cities, 
sell  tickets  for  much  less  than  two  cents  a  mile,  in  order 
to  invite  travel.  The  steam  railroads  do  these  things 
not  as  a  matter  of  benevolence,  but  to  increase  their  in- 
come. 

A  few  years  ago  our  Street  Railway  furnished  parks, 
bands  of  music,  and  amusements  free,  in  many  instances, 
in  order  to  induce  travel.  Now  this  is  done  at  the  ex- 
pense of  the  City  of  private  individuals.  A  few  years 
ago,  for  illustration,  the  cable  line  which  extended  to 
Westport  was  able,  although  with  difficulty,  in  the  hard- 
est times  in  the  history  of  our  City  to  pay  interest  on 
the  cost  of  that  improvement  of  that  property,  after 
deducting  its  operating  expenses.     There  are   now  on 


LdSTTBE  OF  O.  H.  Dean.  19 

that  line  at  least  ten  to  fifteen  houses  where  there  was 
formerly  one,  and  people  are  getting  off  and  on  at  every 
street  crossing  in  relatively  very  large  numbers;  and  yet 
this  is  one  of  the  most  difficult  lines  to  operate  in  our 
City.  The  same  tracks  and  nearly  the  same  property 
and  equipment  on  that  line  will  increase  the  income  much 
larger  than  it  now  is,  without  a  proportionate  increase  of 
expense  to  the  Company. 

Conceding,  as  I  do,  the  present  transfer  system  is 
of  very  great  value  to  our  city;  nevertheless  it  must  not 
be  overlooked  that  it  is  also  of  considerable  value  to  the 
Street  Railway  Company.  It  has  multiplied  travel  enor- 
mously. 

The  language  of  the  proposed  franchise  is  most  un- 
fortunate in  several  particulars.  For  that  reason,  if  for 
no  other,  it  ought  to  be  re-written.  The  forfeiture  clause 
does  not  sufficiently  forfeit.  The  obligation  to  repave  the 
streets  after  the  original  paving  is  worn  out  is  not  specifi- 
cally stated  as  clearly  as  it  should  have  been.  The  City 
gives  it  the  right  to  use  the  conduits,  feed  wires  and  poles 
not  only  for  the  conduct  of  its  own  business,  but  also  for 
the  business  of  everybody  else,  without  any  compensa- 
tion to  the  City  or  regulation  by  the  City. 

These  are  but  a  few  of  the  several  objections  that 
might  be  made  against  the  verbiage  of  the  proposed  fran- 
chise. It  must  be  understood  that  we  vote  on  the  fran- 
chise as  written,  and  not  on  something  that  ought  to  have 
been  written.  The  stockholders  and  bondholders  of  the 
Company  will  hold  us  to  our  written  agreement,  and 
there  should  be  no  uncertainty  about  it. 

The  conditions  of  West  Twelfth  Street  and  the  ac- 
cess to  the  Stock  Yards  and  other  business  portions  of 
West  Kansas  City  are  disgraceful,  but  the  grade  of  the 
trafficway  offered  is  not  what  it  should  be  for  the  busi- 
ness interests  of  the  merchants,  warehouses  and  other 
business  enterprises  which  occupy  the  West  Bottoms. 

I  repeat  that  the  Street  Railway  Company  ought  to 
have  an  extension  of  its  franchise,  not  merely  in  the  inter- 
ests of  those  who  have  made  investments  in  that  prop- 
erty, but  in  the  interests  of  the  City  itself,  and  in  the  in- 


20  Letter  op  O.  H.  Dean. 

terests  of  the  present  and  future  users  of  that  property. 
It  is  necessary  that  this  extension  should  be  granted  that 
^ose  who  have  got  their  money  in  the  property  may  be 
able  to  get  it  out,  and  i*  is  necessary  that  the  Company 
may,  from  time  to  time,  be  enabled  to  make  improve- 
ments and  extensions  required  by  the  growth  of  our  City. 

I  do  not,  however,  apprehend  for  a  second  that  there 
is  any  present  danger  of  bankruptcy  under  the  present 
conditions;  nor  that  any  embarrassmem  can  come  to  the 
Company  because  of  our  failure  to  adopt  the  present 
franchise;  but,  in  order  that  we  may  make  wise  provi- 
sion for  the  future,  we  can  and  should  give  such  an  exten- 
sion as  will  encourage  and  protect  the  City's  future 
growth,  its  traveling  public  and  its  revenues,  and  at  the 
same  time  give  ample  security  to  those  who  assisted  in 
that  growth  by  investing  their  money  in  our  transporta- 
tion facilities. 

O.  H.  DEAN. 

December  9,  1909. 


I  have  indue/  d  Judge  E.  L.  Scarritt  to  pe  lit  me  to 
print  in  full  for  this  pamphlet  a  speech  delivered  by  him  at 
a  recent  meeting  of  the  Commercial  Club.  Judge  Scar- 
ritt is  a  lifetime  Democrat  and  an  ex-City  Counselor,  and 
was  Secretary  of  the  Charter  Board  framing  the  City 
Charter  of  1889. 


Address  by  Judge  E.  L.  Scarritt  Before  the 
Commercial  Club. 

Tills  is  not  a  matter  of  politics  or  personalities.  Neither  of  these  ele- 
ments should  enter  into  the  discussion  of  the  merits  or  demerits  of  this 
franchise  any  more  than  in  the  discussion  of  a  contract  between  two  in- 
dividuals. 

It  is  to  be  assumed  that  we  are  all  honestly  striving  to  arrive  at  the 
same  point — that  is,  to  determine  in  -^r  own  minds  and  for  ourgeires 
whetJier  or  not  this  contract  properly  protects  and  conserves  the  interests  of 
Kansas  CUy — your  interests  and  mine.  If  it  does,  there  can  be  no  valid 
reason  why  we  should  not  adopt  k.  If  it  doewn't,  we  should  not  hesitate  to 
cast  our  votes  against  its  adoption  without  reference  to  our  political,  per- 
sonal or  social  aflBliatlons.  I  know  there  are  some  of  the  best  citizens  of 
this  town  whose  keen  business  minds  are  closed  to  any  but  a  casual  ex- 
amination of  this  ordinance  by  reason  of  their  personal  friendship  for  those 
who,  in  a  representative  capacity,  are  interested  in  its  adoption.  I  woula 
beg  to  be  permitted  to  say  to  them  that  the  highest  expression  of  their 
/riendship  towards  their  friends  and  their  city  would  be  to  conscientiously 
exercise  their  good  business  judgment  in  thoroughly  examining  this  con- 
tract and  ascertaining  whether  it  is  good  or  bad  and  voting  accordingly. 

1  know  there  are  some  whose  "holdings"  in  the  securities  of  the  Com- 
pany will  possibly  be  rec^ded^ln  their  advancing  value  if  the  f'-mchise  i*' 
defeated.  I  would  say  to  them,  let  us  drop  the  gree<5  Qf  avarice  and  assume 
the  love  of  patriotism  when  the  future  welfare  of  r-v  city  is  at  stake. 

T  have  no  quarrel  with  the  representatives  of  he  Street  Railway  Com- 
p«»iiv  in  seeking  to  obtain  the  very  best  franchise  lOr  their  clients  that  they 
can  possibly  obtain.  We.  as  citizens,  however,  shoult*  exercise  .he  same  zeal 
and  vi'^ilance  in  our  own  behalf.  I  have  no  carping  criticism  to  mase  upon 
^bi  representatives  of  the  city,  whose  action  in  this  matter  was  probably 
indurBd  by  the  reflection  that  the  final  responsibility  of  the  adoption  of  th*" 
frar<<hise  did  not  rest  upon  them. 

RESPONSIBILITY  ON   THE   VOTERS. 

And  it  does  not,  the  final  and  whole  responsibility  is  upon  you  and  me— 
and  the  other  voters  of  our  beloved  city — who  may  be  able  to  exercise  their 
franchise    at    a   spe^jial    election    on    December    IfJth.      If    *  i©    >Tdtnanc^    is 


22  Argument — E.  L.  Scarritt. 

adopted  it  will  be  our  ordinance — our  contract.  If  it  is  defeated  we  will  be 
responsible  for  its  defeat.  We  should  therefore  weigh  it  well  before  we  act, 
and  in  so  doing  give  the  city  the  benefit  of  every  substantial .  doubt — for  the 
very  strong  reason  that  if  it  is  defeated  and  we  find  that  we  have  made  a 
mistake  in  defeating  it,  we  can  remedy  the  mistake  by  adopting  it,  or  a 
better  one,  at  any  time  in  the  future.  While  if  we  adopt  it  now  and  find 
we  have  made  a  mistake  in  so  doing  we  cannot  remedy  that  mistake  fw 
forty-two  years — in  other  words,  as  the  old  saying  goes,  it  would  be  a  life- 
time mistake. 

SHOULD   GIVE    CITY    BENEFIT   OF    DOUBT. 

Another  reason  why  we  should  give  ourselves  the  benefit  of  every  doubt 
is  that  the  terms  of  the  ordinance  require  that  it  shall  be  submitted  to  a 
vote  at  a  special  election  on  the  16th  day  of  December.  1909.  at  which  tirrtp 
a  large  number  of  our  fellow  citizens — fellow  stockholders  we  might  catl 
them  in  the  great  corporation  of  Kansas  City — will  be  disfranchised  and 
unable  to  vote  by  reason  of  having  moved  from  former  locations,  and  the 
lack  of  any  recent  registration.  These  fellow  citizens  may  hold  the  balance 
of  votes.  We  should  not  take  the  responsibility — while  in  doubt — to  vote 
for  them.  On  a  proposition  so  momentous  as  this  we  should  have  the  ex- 
pression of  the  largest  number  possible.  This  can  be  obtained  only  at  a 
general  election.  There  everyone  has  an  'equal  opportunity  and  cannot 
complain. 

What  becomes  of  our  boasted  referendum  provision  in  our  new  city 
charter  if  every  question  of  this  kind  and  importance  is  submitted  to  the 
comparatively  few  who  usually  vote  at  special  elections.  The  general  elec- 
tion is  but  a  few  months  off  and  in  plenty  of  time  to  suit  the  avowed  pur- 
poses of  the  Company.  Does  not  the  requirement  that  the  ordinance  be 
submitted  at  a  special  election  add  to  your  doubt?    It  does  to  mine. 

Another  reason  why  we  should  give  ourselves  the  benefit  of  every  doubt 
that  arises  in  our  minds  as  to  the  propriety  of  voting  to  adopt  this  contract 
at  this  time  is  that,  on  the  part  of  the  city,  there  is  no  good  or  valid  reason 
to  hurry — there  is  no  pressing  need  for  such  a  contract,  on  the  part  of  the 
city,  at  this  immediate  time.  We  already  have  a  very  good  contract  which 
our  former  g6od  mayor — Mr.  James  A.  Reed — worked  for  months  and  months 
to  obtain  from  the  unwilling  hands  of  the  Company,  and  which  cured  some 
glaring  defects  and  repealed  oppressive  provisions  in  former  ordinances, 
and  we  are  entitled  to  enjoy  the  beneficial  provisions  of  the  contract  thus 
obtained  for  16  years  yet  to  come. 

Why  should  we  be  in  a  hurry  to  give  up  a  good  contract  and  one  that 
is  certain  and  explicit  in  its  terms — and  which  all  of  us  can  understand — 
for  one  which  is  so  doubtful  and  ambiguous  in  its  provisions  that  it  requires, 
on  the  part  of  those  seeking  it,  an  "interpretation"  and  "construction"  and 
"amendment"  of  almost  every  section  in  It. 

Did  you  ever  hear  of  anybody  writing  letters  or  passing  resolutions  to 
"Interpret"  or  "construe"  the  present  ordinance,  which  is  commonly  known 
as  the  "Peace  Agreement."  Not  while  Mayor  Reed  was  in  office.  I  dare  say 
he  would  have  scorned  such  a  suggestion,  if  any  one  had  had  the  temerity 
to  make  it.  He  doubtless  would  have  said,  "If  the  ordinance  is  uncertain  or 
ambiguous,  we  will  make  it  certain  and  plain  before  we  adopt  it." 

And  even  if  it  had  .passed  the  council  and  his  scrutinizing  eye  had  de- 
tected faults  or  doubtful  provisions  in  it  he  would  have  vetoed  it,  and  had 
rtne- prepared  eliminating  the  faults  and  dotibts;'  .'■' 

Why  then  should  we  at  this  day  ■accept  and  adopt -aii'  ordinance  whicti  -l*' 
confessedly  so  honeycomb*»d  with  fmults  and  dmiW'-a,  and  uncertaiiiti^g-'^a;iiid 


Argument — E.  L.  Scarritt.  23 

ambiguities  as  to  bewilder  the  ordinary  mind  and  put  one's  brain  in  a  whirl 
in  the  attempt  to  follow  its  verbal  contoritions  and  acrobatic  syntax.  Espe- 
cially when  we  have  plenty  of  time  to  think  about  it  and  arrange  a  contract 
that  will  be  plain  and  acceptable  to  all  and  protect  both  the  interests  of 
the  city  and  the  Railroad  Company. 

POVERTY    PLEA. 

The  only  reason  given  by  the  Company  for  action  at  this  time  is  that  it 
must  have  a  42-vear  franchise  in  order  to  float  its  bonds.  This  does  not 
appeal  to  me  with  very  much  force,  because  it  is  contrary  to  our  common 
observation  and  experience.  What  has  been  the  common  practice  of  finan- 
ciers and  money  lenders  for  ages  past  is  not  going  to  abruptly  cease  just 
because  the  Metropolitan  Street  Railway  Company  of  Kansas  City.  Missouri, 
fails  to  obtain  on  December  16,  1909.  a  forty-two-year  franchise  from  the 
citizens  of  Kansas"  City.  Missouri.  No!  No!  The  money  lenders  are  going 
to  continue  to  loan  their  money  where  they  can  get  their  interest,  without 
regard  to  the  fate  of  this  or  any  other  franchise,  and  as  long  as  the  good 
people  of  Kansas  City  continue  to  pour  their  contributions  into  the  coffers 
of  the  Company  it  will  have  sufficient  to  pay  the  interest  (and  then  some) 
on  its  indebtedness,  and  as  lone  as  interest  is  paid  loans  will  be  forthcoming 
and  there  will  be  no  danger  of  foreclosure  cr  receiverships.  What  has  been 
done  before  can  be  done  again,  and  it  is  common  knowledge  with  most  of 
us  that  net  only  this  company,  but  many  others,  have  floated  short-time 
bonds  on  much  less  attractive  propositions  than  this  company  has  to  offer 
under  its  present  sixteen-year  franchise. 

Of  course,  it  may  be  admitted  that  the  Company  might  have  to  pay 
a  little  larger  rate  of  interest  on  short  time  loans,  than  on  long  time  loans — 
we  all  have  to  do  that — but  that  is  no  overwhelming  reason  why  we.  as  citi- 
zens of  Kansas  City,  should  give  up  our  birth-right  for  the  next  forty-two 
years. 

After  reading  the  ordinance  over  time  and  time  again  T  have  really 
come  to  doubt  the  sincerity  of  this  '^want  to  pay  our  debts"  plea.  I  can  find 
no  evidence  therein  of  such  a  desire  on  the  part  of  the  Company.  On  the 
other  hand.  I  am  somewhat  impressed  with  the  notion  that  it  rather  wants  to 
make  more  debts — float  more  bonds  and  stocks  (on  water)  and  increase  the 
value  of  the  stocks  now  on  hand;  and  for  my  part  I  have  no  objection  to  its 
doing  so  if  it  does  not  do  so  at  too  great  an  expense  to  the  city.  Give  us  a 
fair  contract,  I  say.  and  then  proceed  with  "the  cutting  of  the  melon." 

COMPARISON  OF  PRESENT  AND  PROPOSED  ORDINANCES. 

Now,  as  to  the  contracts.  I  say  contracts  because  we  must  consider  the 
one  we  have  and  the  one  that  is  pror>osedwhat  are  we  giving  up  and  what 
are  we  getting?  If  anv  one  of  us  as  business  men  had  a  fair  and  reasonable 
contract  with  any  one  of  our  business  associates  and  he  wanted  to  cancel, 
change  or  extend  it,  it  would  be  but  the  part  of  business  wisdom  to  weigh 
carefully  the  advantages  we  held  under  the  existing  contract  as  against 
those  of  the  proposed  contract.  We  certainly  would  not  relinquish  valuable 
rights  already  secured  unless  we  received  some  raluable  consideration  for 
so  doing. 

EXTENSION    OF    LINES. 

The  present  existing  contract  which  we  have  with  the  Company  re- 
quires, in  Section  7  rhereof  extension?  of  its  lines  for  two  miles  per  y Par— 


24  Argument — E.  L.  Scarritt. 

and  it  also  provides  in  Section  37  thereof  that  if  the  extensions  are  not  made 
as  required  the  city  may  take  possession  of  the  railroad  and  operate  it  until 
it  has  collected  the  net  sum  of  $250,000  anj  also  16  per  cent  of  its  gross 
earnings  as  provided  in  Section  22.  It  further  provides  in  said  Section  37 
that,  "If  any  of  the  Railway  Companies  shall  at  any  time  fail,  neglect,  or 
refuse  to  obey  and  comply  with  any  of  the  provisions  of  this  ordinance  or  any 
lawful  ordinance  of  Kansas  City,  then  in  addition  to  the  rights  and  remedies 
of  the  city  now  possessed  by  general  law  or  otherwise,  the  said  Companiee 
shall  forfeit  all  rights,  powers  and  privileges  by  this  ordinance  granted  and 
conferred  and  this  ordinance  shall  be  null  and  void."  Why  w'as  this  im- 
portant and  essential  provision  left  out  of  the  proposed  contract? 

On  this  subject  of  extensions  the  proposed  ordinance  provides  in  Section 
2  thereof  "that  the  aggregate  of  extensions  on  all  lines  shall  not  exceed  on 
the  average  two  and  one-half  miles  per  ?;ear  of  double  track  or  five  miles 
of  single  track."  There  is  no  provision  that  upon  the  failure  of  the  railroad 
company  to  perform  this  important  duty  that  the  city  may  punish  it  in  any 
way  whatever.  We  have  now  under  the  existing  ordinance  the  right  to  com- 
pel the  company  to  extend  its  lines  at  the  rate  of  two  miles  per  year  for  the 
next  sixteen  years.  Undr  the  proposed  ordinance  we  have  nothing  but  a 
promise  that  they  will  extend  them  at  the  rate  of  2^^  miles  per  year  for  the 
next  forty-two  years.  This,  to  my  mind,  is  not  sufficiently  liberal  to  the 
city. 

The  total  mileage  of  extensions  under  the  proposed  ordinance  which 
the  Company  promises  is  105  miles.  There  are  about  twenty  lines  in  the 
city,  probably  more,  on  each  of  which  the  city  might  require,  if  the  Company 
deemed  it  profitable  to  respond  to  such  requirements,  five  miles  of  extensions 
for  each  road  during  the  next  forty-two  years.  That  would  amount  to  one- 
eighth  of  a  mile  each  year  on  each  line,  or  660  feet,  about  two  ordinary  city 
blocks.  With  the  rapid  growth  and  development  of  the  city,  whose  popula- 
tion will  probably  be  more  than  doubled  in  the  next  sixteen  years,  it  if 
plain  to  be  seen  that  the  entire  100  miles  of  extensions  would  more  than 
probably  be  constructed  within  the  next  sixteen  years,  leaving  the  city  power- 
less to  even  suggest  other  extensions  for  the  balance  of  the  forty-two  years, 
or  more  than  a  quarter  of  a  century. 

By  reference  to  Sections  2  and  1  of  the  proposed  ordinance  It  will  be 
seen  that  the  average  mileage  of  extensions  includes  not  only  the  roads  nov» 
Involved  but  also  all  that  the  Companies  may  hereafter  operate,  thus  includ- 
mg  in  such  average  mileage  in  extensions  any  lines  that  the  Company  may 
hereafter  construct  or  operate  under  traffic  arrangements  with  other  roads, 
making  it  more  certain  that  the  city's  right  to  require  the  extensions  will 
expire  that  much  sooner.  It  makes  one  who  has  had  some  observation  and 
experience  along  this  line  somewhat  uneasy  to  contemplate  the  powerful 
club  the  Company  will  have  over  the  city  after  the  city's  authority  to  require 
extensions  of  lines  has  been  exhausted. 

It,  therefore,  requires  no  argument  to  show  that  the  contract  we  have  a? 
to  extensions  in  the  present  ordinance  is  infinitely  better  than  that  proposed 
in  the  ordinance  we  have  under  discussion. 

NO    CONSIDERATION    FOR    USE    OF    STREETS. 

In  Section  2  of  the  ordinance  under  which  we  are  now  operating  the 
Companies  are  required  to  pay  annually  to  the  city  a  sum  equalling  8  per 
cent  of  the  gross  earnings  of  all  their  lines  fn  Kansas  City,  Missouri,  in- 
cluding the  Swope  Park  line,  the  electric  lin«  to  Independence  and  such 
additional  lines  as  may  be  hereafter  constructed,  out  of  which  there  shall  be 
paid  the  taxes'  of  the  Compwiy  on  its  property;  tk©  net  result  anid  profit  to 


Argument — E.  L.  Scarritt.  25 

the  city  to  be  not  less  than  $234,000  per  year;  and  it  is  further  provided  that 
If  the  Companies  fail  to  pay  the  8  per  cent  as  required  the  city  may  Im- 
mediately take  possession,  control  and  management  of  the  roads  aua  operate 
^he  same  and  collect  therefrom  double  ihe  8  per  cent,  or  IG  per  cent  of  the 
entire  gross  revenues  of  the  Companies. 

Under  the  proposed  ordinance  this  valuable  income  to  the  city  is  specific- 
ally eliminated  by  Section  32  thereof,  and  as  far  as  I  am  able  to  ascertain 
from  a  careful  study  of  the  proposed  ordinance  there  is  nothing  in  its  terms 
which  presents  an  equivalent  .for  this  loss.     Why  was  it  left  out? 

TROLLEY  POLES  AND  OVERHEAD  WIRES  CONTINUED  FOR  FORTY- 
TWO  YEARS. 

The  proposed  ordinance  in  Section  13  thereof  retains  the  right  and 
power  of  the  Company  to  maintain  its  poles  and  overhead  wires  as  they  now 
exist  for  the  ixext  forty-two  years.  That  this  is  the  intent  and  purpose  of  the 
ordinance  and  contract  propoaed  to  be  entered  into  by  the  city  and  the 
Railway  Companies  is  fully  shown  by  reference  to  Section  la  of  the  pro' 
posed  ordinance,  which  provides  that: 

"In  consideration  of  the  acceptance  by  'The  Companies'  of  all  the  pro- 
visions, conditions,  requirements  and  limitations  hereof,  consent,  permission 
and  authority  are  hereby  renewed  and  are  hereby  granted  to  'The  Com- 
panies.' their  lessees,  successors  and  assigns  to  own,  construct,  reconstruct, 
maintain  and  operate  the  street  railways  now  being  operated  by  'The  Com- 
panies' or  any  of  th^m  in,  upon,  over  and  along  the  streets  and  public  places 
in  the  city  of  Kansas  City,  Missouri." 

The  authority  being  "renewed"  and  the  Companies  given  the  right  to 
operate  their  railways  "now  being  operated"  Is  a  plain  contract  that  they 
shall  continue  to  operate  the  same  as  heretofore  until  the  end  of  the  frar^- 
chise,  which  is  .Tune  1,  1951.  This  right  of  the  Companies  is  made  more 
plain,  if  possible,  by  the  language  of  Section  19  of  the  proposed  ordinance, 
which  reads  as  follows: 

"  'The  Companies'  may  use  their  trolley  poles,  feeder  poles,  trolley  wires 
feeder  wires  and  conduits  for  all  purposes  solely  connected  with  the  operation 
of  their  street  railways  such  as  power,  light,  heat,  telephonic  and  other  sig- 
nals. For  such  purposes  the  Companies  may  connect  such  conduits,  poles 
and  wires  with  other  transmission  and  feeder  wires,  power  plants,  sub- 
stations, car  houses,  repair  shops,  or  other  nroperty  of  'The  Corananies'  and 
with  any  transmission,  feeder  or  other  wires  of  any  other  ir.diviJuals  or 
corporations." 

This  is  an  exceedingly  important  provifion.  I  venture  to  say  that  there 
Is  not  a  scintilla  of  doubt  in  the  mind  cf  anyone  here  that  in  the  progress 
of  a  very  few  years  the  unsicjhtlv.  cumbersome  and  exceedingly,  dangerous 
electric  trolley  poles  and  wires  will  be  generally  eliminated  from  surface  use 
and  placed  underground  or  otherwise  disposed  of  by  more  modern  inventions. 

To  my  mind  it  is  absolutely  essential  that  the  city  retain  the  right  to 
require  such  wires  to  be  placed  underground  as  soon  as  it  can  be  demon- 
strated that  their  use  there  will  be  practically  effectual.  In  the  so-called 
resolutions,  Interpretations  and  constructions  which  the  Companies  have 
caused  to  be  issued  and  published  an  attempt  is  made  to  lead  the  public  to 
believe  that  the  city  has  retained  the  right  to  require  underground  wires  ir 
the  proposed  ordinance.  

It  Is  hardly  possible  that  this  attempt  can  mislead  anyone  who  will  ^are- 
fully  read-  the  provisions  of  the  ordinance  and  the  attempted  ooastruotlbn 


26  Argument — E.  L.  Scarritt. 

thereof  by  the  Board  of  Directors  as  set  out  in  their  resolutions.  The  resolu- 
tions say: 

"Sec.  13.  This  Company  recognizes  the  right  of  the  city  to  locate  carry- 
ing poles  and  wires,  and  that  the  manner  in  which  the  wires  shall  be  placed 
underground  or  overhead  is  a  police  regulation  and  cannot  be  waived  or 
bartered  away  by  the  city,  and  this  power  is  unimpaired  and  unaffected  by 
the  above  or  any  other  section  in  the  ordinance,  and  nothing  exists  in  the 
ordinance  on  which  this  Company  could  or  would  base  a  claim  against  the 
exercise  of  such  power  on  the  part  of  the  city." 

The  authority  of  the  city  to  locate  the  poles  and  wires  hereafter  con- 
structed above  ground  is  properly  reserved  in  the  ordinance  as  stated.  That 
much  of  the  resolution  is  correct.  But  it  proceeds,  "And  that  the  manner 
in  which  the  wires  shall  be  placed  underground  or  overhead  is  a  police  regu- 
lation." This  would  be  a  police  regulation  if  it  was  agreed  in  the  ordinance 
that  the  wires  should  be  placed  underground,  but  it  is  nowhere  so  agreed. 
On  the  other  hand,  it  is  specifically  agreed  that  they  shall  remain  and  be 
maintained  as  they  now  exist.  Consequently  the  city  will  never  have  an 
opportunity  to  regulate  the  manner  in  which  they  shall  be  placed  under 
ground. 

The  manner  in  which  the  wires  shall  be  laid  either  under  or  above 
ground  is,  we  concede,  a  police  regulation,  but  the  contract  that  they  may 
remain  above  ground  as  they  now  exist  for  the  whole  term  of  this  franchise 
is  not  a  police  regulation  and  is  binding  upon  the  city.  It  will  be  noted 
that  neither  in  the  ordinance  nor  the  resolution  does  the  Company  agree 
that  the  wires  shall  be  put  under  ground,  but,  as  above  stated,  they  require 
the  city  to  agree  that  they  shall  remain  above  ground.  The  "resolutlng," 
therefore,  in  this  regard  does  not  affect  the  plain  provisions  of  the  ordinance. 

RESOLUTIONS    OUTSIDE    OF   CONTRACT    OF    NO    AVAIL. 

Before  I  forget  it.  I  would  like  to  say  a  word  or  two  about  these  inter- 
preting and  construing  resolutions  which  to  my  mind  neither  interpret  nor 
construe.  I  noticed  in  one  of  the  morning  papers  under  scare  head  lines 
quite  a  lengthy  brief  discussing  an  elementary  principle  of  law  and  quoting 
decisions  from  eminent  courts  to  the  effect  that  where  the  language  of  an 
executory  contract  is  ambiguous  or  so  doubtful  that  Its  meaning  cannot  be 
determined  from  the  language  Itself  the  court  will  resort  to  the  construction 
put  upon  the  language  by  the  acts  and  conduct  of  the  parties  thereto.  This 
is  an  elementary  principle  of  the  law  of  contracts  which  is  hoary  with  age 
and  undoubted  by  anyone  who  has  ever  studied  a  primer  on  the  law  of 
contracts.  It  Is  equally  elementary  law,  however,  that  all  negotiations, 
statements,  promises  and  memoranda  of  the  parties  to  a  contract  made 
before  its  execntion  are  prpsnmed  to  be  embodied  in  the  ey^cuted  instni- 
ment  itself,  and  it  is  a  well-known  rule  of  evidence  that  such  statements, 
promises  and  memoranda  had  or  made  before  the  execution  of  a  contract 
are  inadmissible  in  evidence  in  any  suit  upon  the  contract  to  in  any  wise 
construe,  vary  or  modify  any  of  the  terms  of  the  contract. 

The  ordinance  or  contract  which  we  are  considering  has  not  been  exe- 
cuted by  the  parties  and  will  not  be  until  approved  by  the  voters  on  Decem- 
ber 16  and  accepted  by  the  Railway  Companies  at  some  time  within  60  days 
after  the  election.  Therefore,  the  attempted  resolution  of  the  Board  of 
Directors  of  the  Company  will  be  and  must  be  absolutely  ineffectual  to 
change  or  modify  any  of  Its  provisions. 

•Any  future  city  counselor  would  cut  a  sorry  plight  before  any  court 
which  might  hereafter,  have  the  consitmction  of  this  contract  before  It,  in -a 


Argument — E.  L.  Scarritt.  27 

•uit  between  the  city  and  the  Railway  Company,  if  he  should  attempt  to 
Influence  the  court's  construction  of  the  contract  itself  by  the  presentation 
of  these  resolutions.  He  would  doubtless  be  met  by  the  judicial  suggestion 
that  Inasmuch  as  both  parties  signed  the  contract  after  the  suggestions 
were  made  and  without  embodying  them  therein,  that  they  constituted  no 
part  of  the  agreement;  that  it  was  the  duty  of  one  or  the  other  of  the  parties 
to  refuse  its  ratification  until  all  the  terms  and  conditions  agreed  upon  were 
Incorporated  in  the  contract  itself.  It  does  not  require  the  announcement  of 
a  lawyer  or  a  judge  to  convince  one's  mind  of  the  justice  of  such  a  principle. 
It  is  common  sense.  And  few  men  in  their  right  minds  will  ratify  or  execute 
a  contract  involving  their  rights  or  property  which  they  know  at  the  time 
will  involve  them  in  a  law  suit  for  its  construction  and  interpretation.  This 
is  peculiarly  true  of  the  contract  in  question.  The  law  does  not  provide  the 
same  liberties  ol  the  part  of  the  contracting  parties  in  an  instrument  like 
this  as  it  does  in  a  contract  between  individuals,  for  the  reason  that  the 
city  on  its  part  can  only  act  in  a  specified  manner  through  Its  legislative  and 
executive  departments,  and  all  the  interpretations  and  constructions  in  the 
world  prepared  by  the  Railway  Company  and  cast  abroad  over  the  city 
would  not  be  of  any  binding  effect  whatever  unless  and  until  the  common 
council  and  mayor  of  the  city  should  properly  pass  and  approve  the  terms 
thereof  in  the  manner  specified  in  the  city  charter.  But  the  resolutions, 
however,  while  amounting  to  nothing  as  a  binding  contract  on  the  part  of 
the  Companies  afford  convincing  proof  that  the  construction  put  upon  the 
contract  by  those  who  oppose  it  has  been  and  Is  the  proper  one.  which  I 
think  will  be  presently  demonstrated. 

AS  TO    FARES. 

Now  recurring  to  and  continuing  the  discussion  of  the  defects  in  th© 
proposed  ordinance:  Omitting  many  minor  defects,  I  want  to  call  your 
attention  to  the  two  main  objects  for  the  attainment  of  which  the  contract 
seems  to  have  been  drawn. 

First,  it  does  not  adequately  afford  to  the  public  the  reduction  of  car 
fares. 

Second,  it  does  not  provide  for  any  forfeiture  in  the  event  the  Company 
fails  to  comply  with  any  or  all  of  its  provisions. 

As  to  the  first:  the  only  substantial  merit  which  the  Compa«y  claims  the 
ordinance  has,  Is  that  it  reduces  the  fares  to  4  cents.  If  this  is  true  it  is 
entitled  to  some  consideration,  but  before  we  udmlt  that  It  Is  true  we  want 
to  see  that  it  Is  embodied  in  the  ordinance  in  plain  and  unmistakable  Eng- 
lish language.  Upon  almost  every  street  car  upon  which  we  ride  daily  we 
find  an  alluring  placard  to  the  effect  that  if  the  voters  will  adopt  the  ordi- 
nance they  will  obtain  4-cent  fares.  It  must  have  occurred  to  you,  as  it  has 
to  me,  that  that  statement  would  look  much  better  in  the  ordinance  than 
it  does  in  the  cars. 

If  all  this  language  means  that  the  Companies  are  going  to  permit  the 
people  of  Kansas  City  to  ride  upon  the  cars  for  a  charge  of  4  cents  each, 
and  means  only  that,  then  why  waste  so  much  printer's  ink  and  space?  If 
they  really  intended  to  give  the  people  4-cent  fares,  why  didn't  they  say  so 
in  so  many  words?  There  is  some  reason  for  this  confused,  obscured  and 
apparently  Indefinite  language,  and  the  bug  under  the  chip  is  found  ta  move 
when  we  begin  to  analyze  it. 

Sections  lb  and  Ic  in  the  proposed  ordinance,  relating  to  the  "Reduc 
tlon"  and  "Rates  of  Fares."  comprise  two  pages  of  printed  matter,  or  727 
word*.    These  "The  Companies"  insistently  contend  spell  "4  cents."     If  so. 


28  Argument — E.  L.  Scarritt. 

why  use  so  many  words  ?  It  cannot  be  said  that  they  don't  know  any  other 
way  to  spell  "4  cents,"  because  they  have  demonstrated  to  the  contrary  by 
spelling  it  right  on  their  placards  in  the  cars.  "Vote  for  the  franchise  and 
you  ride  for  4  cents,"  thus  saith  the  car  bulletin  in  big  black  letters.  "Pro- 
vided." and  "Provided,  however,"  and  "Provided"  again,  pnd  "whereas," 
and  "on  condition,"  and  "hereafter,"  and  "hereinafter,"  "aforesaid."  thus 
saith  the  ordinance.  How  easy  it  would  have  been  to  have  put  the  '  car 
oulletin"  in  the  ordinance,  and  the  ordinance  in  the  cars — as  a  soft  foot- 
rest  for  the  "strap-hangers."  It  is  inconceivable  that  any  intelligent  person 
can  be  "hoodwinked"  by  such  palpable  deception. 

But  why  discuss  further  the  different  methods  of  spelling  "4  cents" 
when  "The  Companies"  have  provided  a  much  simpler  and  easier  way  of 
disposing  of  the  "ticket  business"  and  of  maintaining  a  full  5-cent  fare  for 
the  entire  life  of  the  ordinance  in  Section  Ic,  wherein  it  is  written  that  upon 
the  failure  of  the  voters  to  carry  the  bond  issue  at  the  next  general  election, 
or  the  failure  to  construct  the  Twelfth  street  viaduct,  the  city  will  b'?  power- 
less to  enforce  the  "sale  of  tickets"  at  any  price  or  in  any  amount.  The 
Hght  of  the  city  "to  require  'The  Companies'  to  put  into  effect  *  *  ♦  the 
rates  of  fare  in  this  section  provided"  is  "conditioned"  upon  the  happening 
of  both  of  these  events — that  is,  (1)  the  carrying  of  the  bond  issue,  and  (2) 
the  construction  of  the  viaduct.  If  the  proposed  ordinance  is  adopted,  the 
same  elements  that  are  working  so  industriously  for  its  passage  now  will 
be  found  voting  against  the  bond  issue  next  April.  It  will  be  to  their  inter- 
ests to  do  so,  and  they  will  be  looking  out  for  their  interests  then  as  they 
are  now.  The  Street  Railway  Company  is  not  going  to  vote  for  the  "happen- 
ing of  an  event"  which  will  take  out  of  its  pocket  $1,000,000  a  year,  accord- 
ing to  its  own  statement.  And  I  don't  blame  them.  If  the  people  of  this 
city  are  so  unwise  as  to  adopt  this  ordinance,  "The  Companies"  cannot  be 
o.amed  for  taking  all  that  is  coming  to  them  under  its  liberal  terms.  The 
way  to  avoid  such  dire  consequences  is  to  vote  it  down  and  wait  until  we 
can  get  a  decent  one. 

FORFEITURE    SECTION. 

In  studying  a  contract  of  this  kind  and  in  determining  the  effect  of  its 
provisions  and  the  importance  of  its  restrictions  upon  the  Company  it  must 
be  remembered  that  the  Street  Railway  Company  practically  exercises  a 
monopoly.  The  city  cannot  afford  under  the  present  arrangements  to  permit 
the  streets  to  be  burdened  with  more  tracks  than  are  necessary  for  one 
ralrroad  company.  Therefore  tk^  Railroad  Company  has  it  within  its  power 
to  do  as  little  as  possible  and  get  as  much  as  possible.  It  is  the  natural  and 
universal  instinct  of  monopolies  to  get  all  they  can  with  the  least  service 
and  expense.  It  is  a  business  corporation,  organized,  maintained  and  oper- 
ated for  the  purpose  of  making  as  large  profits  on  its  investments  as  the 
limitations  on  its  powers  will  permit. 

Competition,  if  it  were  possible  to  have  competition,  would  remedy  many 
of  the  defects  of  this  ordinance.  But  we  have  no  competition  and  can  have 
none.  A  good  illustration  of  this  idea  is  found  in  the  difference  between  the 
operation  and  service  of  the  steam  railways  and  street  railways.  Steam 
railways  have  more  or  less  competition.  How  long  would  a  steam  railway 
^(3^6t  w6r©  it  to  hitch  onto  the  rfear  6nd  of  its  fine  passengei'  trains  a  freight 
caboose  for  the  purpose  of  carrying  its  passengers.  It  wouldn't  take  long 
t^T  It  to  lr»s0  al!  Of  its  patronag'e.  A  street  railway,  however,  in  order"  to  makp 
fnoreepacfe  for  the  collection  of  fares  from  its  passengers  can  hitch  onto 
'Ch«  hlnd^ftd  of  its  regular. coaches. ja: dilapidated -And  :.rlckety>.  trailer:  that 


Argument — E.  L.  Scarritt.  29 

we  a€e  almost  every  day  and  compel  the  people  to  ride  therein,  and  they 
havtt  and  can  have  no  redress  unless  th  right  of  Buch  redress  as  to  this 
and  other  things  are  expressly  retained  in  the  contract  which  the  city  makes 
with  tho  Company.  The  best  method  of  obLaining  this  redress  and  com- 
nelling  the  Company  to  comply  with  the  terms  of  itp  contract  is  to  emlody 
m  the  ordinance  a  strict  forfeiture  clause.  There  is  no  power  of  ultimate 
forfeiture  in  tnis  ordinance  whatever.  Section  la.  which  is  the  "Granting" 
section,  provides  that  the  authority  of  the  "Companies"  to  maintain  and 
operate  the  roads  shall  wholly  cease  and  determine  on  the  1st  day  of  June, 
1951,  "anything  else  in  this  ordinance  to  the  contrary  notwithstanding." 
This  means  that  the  contract  runs  until  June  1st,  1951,  irrespective  of  any 
other  provision  in  the  ordinance.  Now,  turning  to  Section  33,  which  is  the 
sc-called  forfeiture  section,  we  find  nothing  therein  which  conflicts  with 
Section  la,  but  on  the  contrary  great  care  Is  taken  to  preserve  the  existence 
of  the  contract  by  providing  that  some  "friendly  Indian"  shall  always  be 
on  hand  to  take  care  of  the  franchise  in  case  "The  Companies"  might  be 
inadvertently  and  temporarily  unseated  by  a  furious  and  disgusted  public 
sentiment.  The  franchise  is  absolutely  non-forfeitable.  It  cannot  be  taken 
away  from  "The  Companies"  or  their  "friends,"  for  forty-two  years,  no 
matter  what  their  sins  of  omission  or  commission  may  be.  This  is  enough 
for  me.  I  will  not  vote  for  a  franchise  that  is  so  unfair  to  the  city  in  which 
I  was  born  and  reared,  especially  when  its  legal  effect  is  so  outrageously 
misrepresented  by  some  of  those  who  are  attempting  to  force  it  upon  the 
people  of  this  citv.  We  can  afford  to  wait  and  get  a  better  one,  and  at  the 
same  time  do  the  Companies  no  other  harm  than  to  defer  their  opportunity 
to  profit  immensely,  as  they  will,  by  whatever  franchise  the  city  may  finally 
give  them. 


In  order  that  the  voter  may  have  before  him  for  com- 
parison and  study  the  proposed  ordinance  and  also  the 
Peace  Agreement,  which  is  our  present  contract  with  the 
Metropolitan,  I  have  had  these  contracts  reprinted  herein, 
and  have  put  into  italics  such  parts  of  each  of  these  con- 
tracts as  are  identical  in  both.  This  I  hope  will  assist  our 
citizenship  to  determine  the  more  easily  what  new  matter 
the  Metropolitan  is  offering  us,  and  also  what  we  are  giv- 
ing up  that  we  now  possess  under  the  Peace  Agreement. 
The  side  references  in  each  contract  refer  to  sections  of 
the  other  contract. 


The  following  is  the  ordinance  proposed  to  us  for 
our  vote  Dec.  16. — The  annotations  are  by  Jas.  W.  S. 
Peters. 


AN  ORDINANCE  PROVIDING  FOR  A  CONTRACT  WITH 
THE  VARIOUS  STREET  RAILWAY  COMPANIES  RE- 
LATING TO  A  RENEWAL  AND  EXTENSION  OF 
THEIR  FRANCHISES,  THE  RIGHT  OF  THE  CITY  TO 
PURCHASE,  REDUCING  CAR  FARES  AND  PROVID- 
ING FOR  EXTENSION  OF  LINES,  IMPROVEMENTS 
IN  EQUIPMENT  AND  SERVICE,  AND  MAKING  REG- 
ULATIONS WITH  RESPECT  TO  THE  ABOVE  AND 
OTHER  MATTERS. 

PREAMBLE. 

(a)  WHEREAS,  the  Metropolitan  Street  Railway  Com- 
party,  the  Central  Electric  Raihvay  Company,  the  Kansas  City 
Elevated  Raihvay  Company,  and  the  Kansas  City  and  Westport 
Belt  Railway  Company  (hereinafter  called  "the  Companies") 
now  own  and  operate  all  lines  of  street  raihvay  in  Kansas  City, 
Missouri;  Independence,  Missouri;  Kansas  City,  Kansas;  Ar- 
gentine and  Rosedale,  Kansas,  except  the  following — Kansas 
City  and  Western  Railway,  Missouri  and  Kansas  Interurban 
Railway  Company,  Kansas  City  &  Olathe  Electric  Railway  and 
Blue  Valley  Railway  Companies. 

(b)  WHEREAS,  said  Metropolitan  Street  Railway  Com- 
pany, the  Central  Electric  Railway  Company,  and  the  Kansas 
City  Elevated  Railway  Company,  now  own  and  are  operating 
lines  of  street  railway  within  the  limits  of  Kansas  City,  Mis- 
souri, under  and  by  virtue  of  existing  contracts  with  said  city 
expiring  June  1st,  1925;  and 

(c)  WHEREAS,  said  Kansas  City  and  Westport  Belt 
Railway  Company  is  a  corporation  organized  under  and  by  vir- 
tue of  Article  No.  2,  Chapter  42,  Revised  Statutes  of  1889  of 
the  State  of  Missouri,  and  as  such  is  the  owner  of  and  now 
operates  two  lines  of  railway  commonly  known  as  the  Dodson 
and  Marlborough  lines,  partly  within  and  partly  without  the 
present  corporate  limits  of  said  City;  and 

(d)  WHEREAS,  some  of  "The  Companies"  are  asking  of 


32  The  PRorosED  Ordinance  with  Notes. 

the  City  the  renewal  and  extension  of  franchises,  which  are 
hereby  given  them,  which  will  hereinafter  more  fully  appear; 
therefore 

BE  IT  ORDAINED  by  the  Common   Council  of  Kansas 
City,  Missouri: 

COMPANIES  JOINTLY   AND   SEVERALLY   LIABLE. 

Section  1.  By  the  acceptance  of  this  ordinance  "The  Com- 
panies" and  each  of  them,  do  make  a  contract  with  the  City, 
which  contract  is  embodied  in  this  ordinance  and  when  accepted 
by  "The  Companies"  shall  become  a  fixed  and  binding  contract 
between  the  City  and  ''the  Companies"  and  their  successors 
and  assigns;  and  by  their  acceptance  of  this  ordinance  "The 
Companies"  do  agree  to  become  jointly  and  severally  liable  for 
the  performance  by  them  of  all  the  terms  and  provisions  of  this 
ordinance;  and  do  each  for  itself  represent  to  the  City  that 
"The  Companies"  have  adjusted  among  themselves  their  propor- 
tionate share  of  any  moneys,  rights,  duties  and  obligations 
which  may  under  the  provisions  hereof  at  any  time  during  the 
life  or  at  the  termination  of  this  contract  become  payable,  due 
or  owing  to  them,  or  to  any  or  either  of  them,  by  the  City,  or 
by  them,  or  any  or  either  of  them,  to  the  City;  and  do  agree 
that  they  are  jointly  and  severally  liable  for  all  sums  of  money, 
and  jointly  and  severally  bound  to  perform  all  duties  and  obli- 
gations which  may  by  the  terms  hereof  become  due  or  owing 
to  the  City  by  them  or  any  or  either  of  them,  and  that  payment 
or  tender  by  the  City  to  any  one  of  "The  Companies,"  its  suc- 
cessors or  assigns  of  any  amount  which  may  in  pursuance  of 
the  terms  and  provisions  of  this  ordinance  be  at  the  time  due 
or  payable  to  "The  Companies"  or  to  any  or  either  of  them, 
shall  have  the  effect  of  payment  or  tender  .by  the  City  to  each 
of  "The  Companies"  separately,  and  the  City  is  not  to  be  re- 
sponsible for  the  application  or  proper  division  of  such  sums 
among  "The  Companies."  And  any  notice  served  on  or  by  any 
one  of  "The  Companies"  shall  be  considered  as  though  served 
on  or  by  all  "The  Companies."  It  is  intended  by  this  ordinance 
to  cover  all  the  lines  of  street  railway  now  m  Kansas  City, 
Missouri,  Independence,  Missouri,  for  purchasing  purposes  only, 
Kansas  City,  Kansas,  Argentine,  Kansas,  and  Rosedale,  Kansas, 
as  their  limits  now  exist  or  may  be  hereafter  extended,  as  '**ielX 
as  those  lines  of  road  or  extensions  of  existing  lines  which  may 
be  constructed  pursuant  to  this  ordinance.  And  when  a  street 
railway  "System"  is  referred  to  in  this  ordinance  it  shall  be 
construed  to  mean  and  embrace  all  the  lines  of  railway  and 


The  Proposed  Ordinancje  with  Notes.  33 

extensions  and  additions  thereto  now  or  hereafter  operated  by 
'The  Companies"  or  any  of  them:  Provided,  that  within  one 
(1)  year  after  this  ordinance  takes  effect  "The  Companies" 
shall  become  merged  in  one  corporation  organized  under  the 
laws  of  the  State  of  Missouri,  and  shall  within  such  time  do 
all  things  legally  necessary  to  effect  such  merger ;  and  thereupon 
all  the  rights  and  privileges  by  this  ordinance  granted  to  "The 
Companies"  shall  inure  to  such  Company,  and  all  of  the  duties 
and  obligations  by  this  ordinance  imposed  upon  "The  Com- 
panies" shall  be  binding  upon  such  Company.  Should  "The 
Companies"  fail  to  effect  such  merger,  and  fully  consummate 
the  same  within  said  one  year  period  they  shall  forfeit  to  the 
City  as  liquidated  damages  for  such  failure,  the  sum  of  Five 
Hundred  Thousand  ($500,000.00)  Dollars,  which  may  be  sued 
for  and  recovered  by  the  City  in  any  court  of  competent  juris- 
diction. The  City  hereby  gives  its  consent  to  such  consolida- 
tion. After  such  consolidation,  all  rights  herein  granted  shall 
be  assigned  and  transferred  to  said  Missouri  corporation,  and 
thereafter  there  shall  be  no  assignment  of  the  rights  herein 
granted  without  the  consent  of  Kansas  City. 

NOTE, 

Although  this  section  makes  party  to  the  agreement  all  the 
subordinate  street  railway  companies  and  compels  their  merger 
into  one  Missouri  company,  it  does  not  make  party  to  the  agree- 
ment the  Kansas  City  Railway  and  Light  Company,  that  owns 
and  controls  all  the  stock  of  these  subordinate  companies,  nor 
does  it  stipulate  that  this  New  Jersey  corporation  shall  have 
oflaces  in  our  jurisdiction  and  agree  to  accept  service  of  legal 
notices  in  our  state.  The  New  Jersey  company  is  the  only  one 
whose  stock  is  owned  by  individuals.  There  is  no  provision 
whatever  forbidding  the  stock  of  the  merger  company  from 
being  owned  and  controlled  by  this  foreign,  intangible  power. 

Neither  does  this  section  in  any  way  provide  that  outstand- 
ing bonds  shall  be  bound  by  this  agreement  or  arrange  in  any 
way  to  prevent  the  possibility  of  our  going  back  at  once  to  five- 
cent  straight  fare  in  case  the  present  bonds  should  he  merely 
extended  and*  later  foreclosed. 

GRANT  TO  COMPANIES. 
AUTHORITY. 

Section  la.  In  consideration  of  the  acceptance  by  "The 
Companies"  of  all  the  provisions,  conditions,  requirements,  and 
limitations  hereof,  consent,  permission  and  authority  are  re- 
newed and  are  hereby  granted  to  "The  Companies,"  their 
lessees,  successors  and  assigns,  to  own,  construct,  reconstruct, 
maintain  and  operate  the  street  railways  now  being  operated 


34  The  Proposed  Ordinance  with  Notes. 

by  "The  Companies"  or  any  of  them  in,  upon,  over  and  along 
the  streets  and  public  places  in  the  City  of  Kansas  City,  Mis- 
souri, for  identification  of  which  reference  is  made  to  a  plat 
hereto  attached  and  made  a  part  hereof,  marked  "Exhibit  A" 
(which  also  shows  all  the  lines  of  street  railway  owned  or 
operated  by  "The  Companies"  or  any  of  them,  outside  of  the 
present  limits  of  Kansas  City,  Missouri). 

The  consent,  permission  and  authority  hereby  granted  to 
"The  Companies"  shall  wholly  cease  and  determine  on  the  1st 
day  of  June,  in  the  year  One  Thousand  Nine  Hundred  and 
Fifty-one  (1951),  anything  else  in  this  ordinance  to  the  con- 
trary notwithstanding. 

NOTE. 

In  a  recent  article  on  "Securities  of  Public  Utilities  Corpora- 
tions," published  in  the  last  copy  of  Harper's  Weekly,  Edward  B. 
Lee  opens  his  discussion  as  follows: 

"Public  Utility  corporations  serve  every  one  of  every  class 
in  every  community  of  size  in  the  country.  They  come  closer 
to  the  people  than  any  other  corporations  and  are  more  depend- 
ent on  their  will,  operating  as  they  do  by  the  public's  consent. 
That  some  of  them  now  operate  in  defiance  to  public  wishes, 
having  in  the  past  been  granted  perpetual  or  long-time  fran- 
chises by  the  people,  does  not  alter  this  general  proposition. 
Fewer  franchises  of  the  kind  just  mentioned  will  be  given  in 
the  future  than  in  the  past  and  greater  public  control  will 
necessarily   follow." 

Delos  P.  W^ilcox,  in  a  report  on  a  standard  form  of  fran- 
chises for  street  railway   companies  states: 

"The  exigencies  of  a  great  city  requires  that  the  public 
authorities  should  have  control  of  the  laying  out  and  unifi- 
cation of  transit  routes,  so  as  to  bring  about  the  highest 
degree  of  operation  and  efficiency  of  service.  This  cannot 
be  done  where  franchises  are  granted  either  in  perpetuity 
or  for  specific  and  unrelated  periods.  Only  the  reserved  right 
of  the  city  to  terminate  any  particular  grant  whenever  it 
seems  necessary  to  make  the  road  covered  by  such  grant  a 
part  of  a  more  general  system  can  guarantee  the  development 
•of  city  transit  along  rational  lines." 

Mr.  Maltbie,  rnrnmariting  upon  theses  eApi'easiun&  by — Pro* 
fiiiTinr  T?flTi'n,  says:  'There  is  nothing  more  vital  to  a  com- 
munity than  transportation.  If  transit  facilities  are  poor,  not 
only  are  commerce  and  industry  seriously  handicapped  but 
the  moral  and  physical  wellbeing  of  a  large  population  is 
menaced  and  the  happiness  of  all  is  seriously  affected.  No 
city  should  so  part  with  its  effective  control  over  the  transit 
situation  that  under  changed  conditions  it  will  be  helpless  to 
secure   the   most  efficient  transit   system." 


The  Proposed  Ordinance  with  Notes.  35 

"In  a  recent  report  by  the  investigating  committee  to  the 
National  Civic  Federation  Commission  on  Public  Ownership 
involving  two  years  work  on  the  part  of  a  committee  of  the 
leading  municipal  experts  in  this  country,  this  committee  said 
"We  are  of  the  opinion  that  all  future  grants  to  private  com- 
panies for  the  construction  and  operation  of  public  utility  ' 
should  be  terminable  after  a  certain  fixed  period  and  thftt? 
*iitauviLily  Lilita  ahould  iiaiL  a  LtiUin  fijiod  period  and  that 
meanwhile  cities  should  have  the  right  to  purchase  the  prop- 
erty for  operation,  use  or  sale  paying  its  fair  value." 

"And  the  National  Municipal  League,  has  pronounced  its 
opinion  after  an  investigation  made  by  the  following  commit- 
tee: Horace  E.  Demming,  New  York,  chairman;  Hon.  Geo. 
W.  Guthrie,  now  mayor  of  Pittsburg;  Professor  Frank  Good- 
now,  Columbia  University;  Chas.  Richardson,  Philadelphia; 
Professor  L.  S.  Rowe,  University  of  Pennsylvania;  Dr.  Shaw, 
editor  of  the  Review  of  Reviews,  and  Clinton  Rogers  Wood- 
ruff,   of  ^  Philadelphia,    as    follows : 

"The  committee  is  also  convinced  that  it  has  been  de- 
monstrated by  abundant  experience,  that  in  the  interest  of 
the  public  when  a  city  grants  a  franchise  to  a  private  corpor- 
ation, association  or  individual,  the  term  of  such  grant  should 
be  limited  to  a  definite  period  not  exceeding  twenty-one  years." 


REDUCTION  OF  FARES, 

Section  lb.  (1)  Nothing  in  this  ordinance  contained  shaU 
have  the  effect  of  taking  away,  impairing  or  in  any  wise  affect- 
ing the  right  of  the  City,  if  any  such  it  has  under  existing 
laws  and  ordinances,  to  reduce  car  fares  during  the  period 
expiring  June  1st,  1925,  but  all  existing  rights,  both  of  the 
City  and  of  "The  Companies"  are,  in  this  regard,  hereby  ex- 
pressly reserved  and  remains  unaffected  by  this  contract. 

(2)  The  City  expressly  reserves  to  itself  all  rights  which 
it  may  have  by  contract  or  by  law  to  fix  by  ordinance  the 
rates  of  fare  to  be  charged  by  'The  Companies"  or  either  of 
them  within  the  corporate  limits  of  the  City,  during  the  entire 
period  of  this  franchise,  nor  shall  anything  herein  contained 
be  construed  as  a  waiver  on  the  part  of  "The  Companies"  of 
their  right  under  previous  contracts,  or  by  law,  to  dispute  the 
City's  power  to  fix  such  charges,  prior  to  June  1st,  1925,  but 
from  and  after  the  first  day  of  June,  1925,  the  City  shall  have 
and  is  hereby  expressly  given  the  right,  power  and  authority 
to  fix,  by  ordinance,  rates  of  fare  to  be  charged  by  "The  Com- 
panies" within  the  then  corporate  limits  of  the  City,  and  to 
change  such  rates  by  ordinance  from  time  to  time  as  often  as 
it  may  elect  provided,  however,  that  such  rates  must  be  reason- 
able and  shall  not  be  changed  oftener  than  once  every  two 
years. 


36  The  Proposed  Ordinance  with  Notes. 

RATES  OF  FARE. 

Section  Ic.  Subject  to  the  provisions  of  Section  lb,  "The 
Companies"  shall  charge  passengers  the  following  rates  of  fare, 
to-wit : 

For  a  continuous  trip  in  one  general  direction  within  the 
present  or  future  limits  of  said  cities  over  their  street  rail- 
ways covered  by  this  ordinance  and  all  extensions  thereof, 
whether  owned,  leased  or  operated  by  them,  the  sum  of  five 
cents  (5c)  for  each  passenger  twelve  (12)  years  of  age  or  over, 
and  one-half  fare  for  each  passenger  under  twelve  years  of 
age,  provided  that  children  under  seven  (7)  years  of  age 
accompanied  by  a  person  paying  fare  shall  be  permitted  to  ride 
free.  And  no  fare  in  excess  of  those  in  this  Section  mentioned 
shall  be  charged  by  "The  Companies"  at  any  time  during  the 
life  of  this  ordinance,  provided  that  at  all  times  during  the  life 
of  this  franchise,  after  January  1st,  1913,  "The  Companies" 
shall  f)irnish  all  conductors  with  tickets  providing  for  a  con- 
tinuous trip  in  one  general  direction,  which  shall  be  sold  to 
the  public,  six  tickets  for  twenty-five  cents.  And  sell  at  "The 
Companies*  "  office  and  at  least  twenty-five  other  convenient 
points  in  the  city  twenty-five  tickets  for  One  Dollar,  provided 
that  five  of  said  places  of  sale  shall  be  in  Kansas  City,  Kansas, 
and  commencing  with  the  accepting  of  this  ordinance  one-half 
fare  tickets  which  shall  be  sold  at  the  rate  of  two  tickets  for 
five  cents.  "The  Companies"  shall  carry  passengers  over  the 
extension  and  the  main  lines  for  the  fare  charged  on  said 
main  lines,  with  full  transfer  privileges.  Provided,  however, 
that  the  City  has  the  right  to  require  "The  Companies"  (and 
"The  Companies"  hereby  agree)  to  put  into  effect  at  the  time 
hereinafter  mentioned  the  rates  of  fare  in  this  section  provided 
upon  condition  that  the  City  Council  on  or  before  the  1st  day 
of  December,  1909,  pass  a  regular  and  necessary  ordinance 
providing  for  a  bond  issue  of  Eight  Hundred  and  Seventy-five 
Thousand  ($875,000)  Dollars,  and  the  people  of  the  City,  upon 
a  regular  vote  thereon,  approve  said  bond  issue;  said  issue  of 
bonds  to  be  devoted  and  applied  to  the  payment  of  two-thirds 
of  the  cost  of  construction  of  what  is  commonly  known  as 
"Twelfth  Street  Trafficway  Viaduct"  mentioned  in  Section  22  of 
this  ordinance;  that  said  rate  of  fare  will  go  into  effect  imme- 
diately upon  the  approval  of  said  bond  issue  by  the  vote  of 
the  people,  and  the  appropriation  of  the  money  to  the  payment 
of  the  said  "Twelfth  Street  Trafficway  Viaduct"  in  which  event 
the  City  shall  pay  two-thirds  of  the  cost  of  construction  of 
said  Viaduct,  including  grading  and  land  damages,  and  "The 


The  Proposed  Ordinance  with  Notes.  37 

Companies"  shall  paj'  one-third  of  the  construction  of  said 
Viaduct  including  grading  and  land  damages,  said  Viaduct  to 
cost  not  more  than  One  Million  Three  Hundred  and  Fifteen 
Thousand  ($1,315,000)  Dollars,  including  grading  and  land 
damages. 

NOTE. 

For  uncertainty  of  meaning  of  terms  used  in  this  section,  •em 
Philadelphia  Rate  Decision  in  back  of  this  pamphlet. 

There  is  no  question  but  that  in  entering  into  this  contract 
we  bind  ourselves  to  the  definite  fare  and  ticket  arrangement 
therein  described  whatever  the  courts  in  the  future  may  decide 
it  to  mean,  and  that  too  irrevocably  for  the  next  42  years. 

It  is  not  within  the  power  of  a  city  council  to  reduce  the 
rates  of  fare  on  street  railways  whose  franchises  have  been 
extended  in  duration  on  conditions  involving  large  expense  to 
the  corporation  and  substantial  benefits  to  the  public.  Cleveland 
vs.  Cleveland  Ey.  Co.,  194  U.  S.  517. 

Perhops  this  is  one  reason  why  they  inserted  the  Traffic 
Way  provision  in  a  rapid  transit  ordinance. 

A  state  legislature  may  authorize  a  municipal  corporation  to 
contract  with  a  street  railway  company  as  to  rates  of  fare  and 
so  to  bind  during  a  specified  period  any  future  common  council 
from  altering  or  in  any  way  interfering  with  such  a  contract. 
Detroit  vs.  Detroit  Citizens  St.  Ry.  Co.,  184  U.  S.  368. 

The  regulation  price  of  gas  by  the  state  or  municipalities 
is  not  the  exercise  of  police  power  which  cannot  be  embraced 
by  contract.  State  ex.  rel.  St.  Louis  vs.  Laclede  Gas  Co.,  102 
Mo.  472. 

The  charter  received  by  a  street  railway  company  from  a 
city  provided  that  the  latter  should  not  reduce  fares  below  five 
centa.  A  later  contract  between  the  company  and  the  city 
provided  that  'in  the  construction,  maintenance  and  operation" 
of  its  lines  the  company  should  be  subject  to  the  present  and 
future  ordinances  of  the  city.  Held  that  this  did  not  enable 
the  city  to  reduce  fares  below  five  cents.  Minneapolis  St.  R.  R. 
Co.  vs.  City  of  Minneapolis,  15.5  Fed.  Rep.  989. 

A  city  ordinance  providing  that  the  rate  of  fare  for  one  pas- 
senger shall  not  be  more  than  five  cents  is  a  contract  which 
gives  the  company  the  right  to  charge  a  rate  of  fare  up  to  five 
cents  and  the  city  cannot  reduce  the  five  cent  rate  established 
by  the  company  without  its  consent.  Detroit  vs.  Detroit  Citizens' 
St.  Ry.  Co.,  184  U.  S.  368. 

It  is  also  beyond  question  that  the  officials  of  our  city  have 
never  made  any  such  investigation  as  is  proper  in  order  to  de- 
termine whether  we  are  justified  in  fixing  this  fare  and  relieving 
the  company  of  its  obligation  under  the  Peace  Agreement,  such 
as  its  paying  eight  percent  of  the  gross  profits,  repaving  out* 
streets,  and  proper  forfeiture  clauses  and  extending  its  franchises 
to  1951. 

The  basis  of  all  calculations  as  to  the  reasonableness  of 
rates  to  be  charged  by  corporations  maintaining  a  public  high- 
way under  legislative   sanction  must  be  the  fair  value  of  the 


38  The  Proposed  Ordinance  with  Notes. 

property  being  used  by  it  fo^  the  convenience  of  the  public.  In 
order  to  ascertain  that  value  the  original  cost  of  construction, 
the  amount  expended  in  permanent  improvement,  the  amount 
and  market  value  of  its  bonds  and  stock,  the  present  as  com- 
pared with  the  orginal  cost  of  construction,  the  probable  earning 
capacity  of  the  property  under  particular  rates  prescribed  by 
statute,  the  sum  required  to  meet  operating  expenses,  are  all' 
matters  for  consideration  to  be  given  such  weight  as  may  be 
just  and  right  in  each  case.     Smythe  vs.  Ames,  169  U.  S.  466. 

The  basis  of  all  calculations  as  to  the  reasonableness  of 
rates  charged  must  be  the  fair  value  of  the  property  being  used 
by  it  for  the  convenience  of  the  public.  Seaboard  Air  Line  R. 
R.  Co.  vs.  R.  R.  Commissioners,  155  Fed.  Rep.  792. 

In  estimating  the  value  of  a  railroad  the  estimate  must  not 
be  dated  on  what  its  value  in  the  past,  nor  what  it  cost,  nor 
what  it  would  cost  to  duplicate  it,  nor  its  probable  value,  but 
must  be  based  on  its  present  value.  Matthews  vs.  Board  of 
Corporation  Commissioners,  106  Fed.  7. 

The  basis  of  all  calculation  as  to  the  reasonableness  of  rates 
to  be  charged  by  public  service  corporations  is  the  fair  value 
of  the  property  used  by  it  for  the  convenience  of  the  public. 
Kennebec  Water  Dist.  vs.  Waterville,  97  Me.  185.    60  L.  R.  A.  856. 

Those  who  have  conceived  and  executed  a  railroad  enter- 
prise have  no  right  to  exact  a  return  upon  an  extravagant  capi- 
talization. Danville  vs.  Southern  Ry.  Co.  8  Interstate  Commerce 
Report  409. 

To  make  the  capital  account  of  a  railroad  the  measure  of 
its  legitimate  earnings  would  place  as  a  rule  the  corporation 
which  has  been  honestly  managed  from  the  outset  under  enor- 
mous disadvantages.  Grain  Shipers  Assn.  vs.  Ills.  Central  R.  R. 
Co.,  8th  Intrs.  Com.  Rep.  158. 

If  a  railroad  corporation  has  bonded  its  property  for  an 
amount  that  exceeds  its  par  vafue  or  if  its  capitalization  is 
largely  fictitious  it  may  not  impose  upon  the  public  the  burden 
of  such  increased  rates  as  may  be  required  for  the  purpose  of 
realizing  profits  upon  such  excessive  valuation  or  fictitious 
capitalization;  and  the  apparent  value  of  the  property  and 
.  franchises  used  by  the  corporation  as  represented  by  its  stock, 
bonds  and  obligations,  is  not  alone  to  be  considered  when  de- 
termining the  rate  that  may  be  reasonably  charged.  Smythe  vs. 
Ames,  169  U.  S.  466. 

UNIVERSAL   TRANSFERS— RESERVATION    OF    CONTROL 

BY  CITY. 

Section  Id.  All  transfer  privileges  heretofore  given  and 
granted  by  **The  Companies"  shall  he  continued,  and,  in  addi- 
§^  tion  thereto,  universal  transfers  without  extra  charge,  shall 
be  granted  over  all  parts  of  the  system  in  Karisas  City,  Mis- 
souri, and  also  over  all  the  system  in  Kansas,  as  the  same  now 
exists  or  may  be  hereafter  extended  within  the  then  limits  of 
Kansas  City,  Missouri,  Kansas  City,  Kansas;  Rosedale,  Kan- 
sas; Argentine,  Kansas,  and  intermediate  points,  so  long  as 


The  Proposed  Ordinance  with  Notes.  39 

""The  Companies''  their  representatives,  successors  or  assigns, 
shall  direjctly  or  indirectly  control,  be  interested  in,  operate  or 
have  operating,  traffic  or  carrying  arrangements  with  the  com- 
pany or  companies  oivning,  operating  or  controlling  the  said 
lines  of  street  railway  in  Kansas  City,  Missouri;  Kansas  City, 
Kansas;  Rosedale,  Kansas,  o?-  Argentine,  Kansas,  and  also  so 
long  as  any  of  the  cars  of  the  Kansas  City,  Missouri,  lines 
shall  operate  over  any  of  the  tracks  of  the  said  Kansas  lines, 
or  the  cars  of  any  of  the  said  Kansas  lines  shall  operate  over 
any  of  the  tracks  of  the, Kansas  City,  Missouri,  lines.  It  being 
the  intention  that  the  provisions  as  to  transfers  shall  extend 
to  all  street  raihvay  lines  in  Kansas  City,  Missoun;  Kansas 
City,  Kansas;  Rosedale,  Kansas;  Argentine,  Kansas,  and  all 
svch  lines  ivithin  any  extension  of  the  corporate  limits  of  said 
city,  or  any  of  them,  which  shall  receive  or  deliver  to  the 
said  Companies  in  Missouri  any  of  their  passengers  or  cars. 

Ajnd  "The  Companies"  shall  make  no  traffic  or  transfer 
arrangements  tvith  any  companies  operating  lines  hereafter 
built  in  to  Kansas  City,  Missouri;  Kansas  City,  Kansas;  Rose- 
dale, Kansas,  or  Argentine,  Kansas,  unless  "The  Companies*' 
shall  give  like  transfers  over  their  lines,  as  above  provided. 

The  foregoing  provisions  as  to  transfers  shall  not  be  so 
construed  as  to  enable  passengers  to  make  ivhat  is  commonly 
known  as  a  "loop."  By  a  "loop"  is  meant  such  a  system  of 
transfers  as  will  enable  a  passenger  to  return  substantially  to 
the  initial  point  for  a  single  fare.  It  being  the  intention  of  this 
contract  that  transfers  shall  be  furnished  that  will  enable  a 
passenger  to  go  by  a  reasonably  direct  route  to  his  destination 
at  any  point  on  "The  Companies' "  lines  for  a  single  fare,  and 
the  provision  as  to  "loops"  shall  not  be  construed  as  to  inter- 
fere theretvith,  but  it  shall  not  be  so  construed  that  a  transfer 
shall  be  given  so  as  to  enable  a  passenger  to  go  to  one  point 
and  stop  there  and  then  return  by  some  other  route  to  the 
point  from  which  he  started..  But  the  City  specially  reserves 
to  itself  the  right  and  power  by  reasonable  ordinances  to  regu- 
late the  matter  of  transfers  so  as  to  carry  out  the  spirit  of 
this  section. 

A  passenger  upon  any  car  delayed  through  the  fault,  neg- 
ligence or  inability  of  "The  Companies"  shall  be  entitled  to  re- 
ceive a  transfer  to  a  car  upon  the  nearest  line  of  "The  Com- 
panies'* going  in  the  same  general  direction  as  the  delayed  car. 
Provided,  however,  that  nothing  in  this  section  contained  shall 
deprive  the  City  of  Kansas  City,  Missouri,  of  the  right,  which 
is  hereby  reserved  if  it  so  elect  at  any  time,  to  confine  to  the 
then  limits  of  Kansas  City,  Missouri,  or  to  the  then  limits  of 


40  The  Proposed  Ordinance  with  Notes. 

any  one  or  more  of  all  the  cities  herein  mentioned,  said  trans- 
fer privileges,  or  right  to  a  continuous  passage  over  "The  Com- 
panies' *'  lines,  for  the  aforesaid  rates  of  fare.  Provided,  also, 
that  in  the  event  "The  Companies"  shall  be  unable  to  agree 
with  any  of  the  Cities  hereinbefore  named  for  a  renewal  of 
f!heir  franchise  with  such  City  or  Cities,  then  they  shall  not  be 
obligated  to  extend  such  transfer  privileges  to  such  City  or 
Cities  refusing  to  agree  with  "The  Companies."  Provided, 
however,  that  "The  Companies"  shall  accept  any  reasonable 
franchise  that  may  be  offered  by  such  City  or  Cities.  Provided, 
further,  that  in  the  event  the  City  elects  to  purchase  the  prop- 
erty in  Missouri  only,  "The  Companies"  shall  not  be  obligated 
to  continue  the  transfer  privileges.  Provided,  further,  that 
"The  Companies"  may  make  reasonable  regulations  as  to  the 
time  in  which  such  transfers  shall  be  used,  not,  however,  less 
than  thirty  minutes  after  arrival  of  car  at  the  transfer  point. 

NOTE. 

Under  this  section  the  Metropolitan  can  withdraw  inter-city 
transfers. 

1.  Whenever  it  can  persuade  one  of  our  City  Councils  to 
pass  an  ordinance  giving  it  permission  so  to  do. 

2.  At  any  time  it  asks  the  City  of  Kansas  City,  Kansas,  to 
give  it  a  new  contract  and  it  does  not  immediately  obtain  a 
contract  to  its  liking. 

Read  it  for  yourself. 

COMPENSATIONS  AND  RESERVATIONS  AS  TO  CITY 
EXTENSIONS. 

Section  2.  The  said  City  shall  have  the  right  within  the 
^7  limits  of  the  City  as  now  established  or  hereafter  enlarged  at 
any  time  to  require  "The  Companies*'  to  make  extensions  and 
connections  of  and  with  any  line  or  lines  of  their  roads  where 
reasonably  necessary  for  the  convenience  of  the  inhabitants  of 
the  City,  provided  that  the  aggregate  of  such  extensions  on  all 
said  roads  so  required  by  the  City  shall  not  exceed  on  the  aver- 
age more  than  two  and  one-half  (21/2)  miles  of  double  track 
or  five  (5)  miles  of  single  track  per  year.  All  such  etxensions 
shall  be  operated  as  a  part  of  one  "System"  in  conformity  with 
the  provisions  of  this  ordinance.  Provided,  further,  "The  Com- 
panies" shall,  upon  the  order  of  the  City  Council,  construct, 
equip  and  operate  such  extensions  of  its  street  railway  system 
in  addition  to  those  hereinbefore  provided  for  as  may  be  re- 
quired by  the  City  Council;  provided,  "The  Companies"  shall 
not  be  required  on  account  of  any  extensions  of  their  street 


§3 


The  Proposed  Ordinance  with  Notes.  4i 

railways  other  than  the  extensions  of  two  and  one-half  (214) 
miles  of  double  track  or  five  (5)  miles  of  single  track  per 
annum  to  increase  their  total  capital  investment  to  such  an 
extent  that  the  return  thereon  would  not  be  reasonable. 

Before  any  extensions  of  lines  are  made  as  herein  pro- 
vided for,  the  necessary  consents  of  the  property  owners  along 
the  route  of  the  propose^  extension  shall  he  obtained;  the  right 
being  reserved  to  any  citizen  to  secure  said  consents  if  "The 
Companies*'  do  not  obtain  them.  Upon  the  passage  of  an  or- 
dinance by  Kansas  City  authorizing  or  requiring  any  such  ex- 
tension, said  right  to  construct  and  operate  said  road  shall  be 
subject: 

(a)  To  all  the  provisions  of  this  ordinance. 

(b)  *'The  Companies/*  their  successors  and  assigns,  shall 
}iave  the  right  and  authority  to  go  upon  the  streets  and  parts 
of  streets,  as  may  be  designated,  and  make  such  excavations 
therein  as  may  be  necessary  for  the  construction  and  comple-  ^23 
tion  of  said  street  railway  extensions  and  electrifications;  pro-  "" 
vided,  however,  that  "The  Companies*'  shall  first  procure  from 

the  Superintendent  of  Streets,  or  such  other  officer  as  the  City 
may  authorize  to  issue  the  same,  a  permit  to  do  so  before  en- 
tering upon  and  making  any  excavation  in  said  streets.  And 
shall  have  the  further  right  and  authority  to  make  track  con- 
nections ivith  the  car  barns,  poiver  houses,  track  with  track, 
at  points  of  intersection,  and  shall  also  have  the  right  to  con- 
duct their  electrical  power  over  feeder  vnres  from  the  power 
stations  to  said  lines  of  street  railway;  provided,  however, 
that  the  route  thereof  and  location  of  carrying  poles  and  ducts 
therefor,  and  all  lateral  and  stvitch  tracks,  shall  first  be  ap- 
proved by  the  Board  of  Public  Works;  and  the  Council  may 
by  reasonable  ordinance  regulate  said  matters;  and  provided, 
further,  that  in  conducting  and  repaiHng  said  lines,  "The  Com- 
panies," their  successors  and  assigns,  shall  restore  and  leave 
the  streets  which  they  may  disturb  by  the  constriiction  in  as 
good  condition  as  they  were  at  the  time  of  commencing  said 
work. 

Any  pavement  outside  of  the  rails  of  said  track  that  may 
be  disturbed  or  taken  up  by  "The  Companies"  in  the  construc- 
tion, reconstruction  or  repair  of  their  railways  shall  be  re- 
newed and  reconstructed  and  put  in  as  good  condition  as  it  was 
formerly. 

All  paving,  repaving,  construction,  reconstruction  and  re- 
pairing shall  be  done  to  the  satisfaction  and  approval  of  the 
City. 

(c)  All  pavements  shall  join  up  to  the  rails  as  closely  as 


42  The  Proposed  Ordinance  with  Notes. 

practicable,  and  be  so  kept  that  the  wheels  of  ordinary  vehicles 
will  not  in  running  along  the  rails  unreasonably  drop  betiueen 
the  pavement  and  the  rails,  and  the  upper  surface  of  the  pave- 
ment at  its  juncture  with  each  rail  shall  be  as  nearly  as  prac- 
ticable on  the  same  level  as  the  upper  'surface  of  the  rail. 
The  general  surface  of  the  pavement  between  the  rails  to  be 
as  high  as  the  pavement  which  is  outside  of  the  track,  except 
that  there  may  be  next  to  the  surface  of  the  flange  of  the 
rails  such  bevel  or  curve  as  may  be  necessary  to  have  a  proper 
juncture  of  the  pavement  with  the  upper  surface  of  the  flange 
of  the  rail. 

(d)  Provided,  that  "The  Companies"  shall  not  be  obli- 
gated hereby  to  construct  and  operate  in  the  territory  south 
of  48th  street  or  east  of  Cleveland  avenue  any  such  additional 
extensions  in  any  street  or  public  way  nearer  any  then  exist- 
ing parallel  street  railway  tracks  of  "The  Companies"  than  s-x 
average  city  blocks,  not  to  exceed  twenty-two  hundred  (2200) 
feet;  provided,  that  this  paragraph  shall  not  be  applied  so  as  to 
prevent  the  City  from  requiring  an  extension  of  the  East 
Twelfth  Street  line.  And  provided  further,  that  within  one 
year  after  the  necessary  consents  of  property  owners  shall  be 
secured  for  the  construction  of  a  street  railway  line  from  15th 
Street  to  a  connection  with  the  existing  line  of  double  track 
on  Guinotte  Avenue,  a  double  track  street  railway  line  shall 
be  constructed  and  operated  commencing  at  the  intersection 
of  Guinotte  Avenue  and  Montgall  Avenue,  thence  East  and 
South  on  Guinotte  Avenue  to  the  intersection  of  Chestnut  Ave- 
nue; thence  south  over  the  Chestnut  Avenue  Viaduct  hereafter 
to  be  constructed  and  on  Chestnut  Avenue  to  Independence 
Avenue;  thence  south  on  either  Chestnut  Avenue  or  Prospect 
Avenue,  or  part  way  on  each,  as  Kansas  City  may  elect,  to  15th 
Street.  Before  the  extension  of  said  line  is  made  through  the 
North  Terrace  Park,  the  consent  of  the  Board  of  Park  Com- 
missioners shall  be  obtained.  When  said  line  is  constructed 
on  Chestnut  Avenue,  "The  Companies"  shall  build  and  there- 
after maintain  suitable  stairs  from  the  surface  of  the  street  to 
the  top  of  the  Viaduct  over  Ches^tnut  Avenue  at  Lexington 
Avenue,  so  as  to  afford  the  public  easy  access  from  said  Via- 
duct to  the  surface  of  said  Chestnut  Avenue.  The  plans  of  said 
stairs  shall  be  subject  to  the  approval  of  the  Board  of  Park 
Commissioners,  and  the  work  of  building  said  stairs  and  con- 
structing said  track  through  North  Terrace  Park  shall  be  done 
in  a  manner  satisfactory  to  the  Board  of  Park  Commissioners, 
and  under  its  supervision. 

"The  Companies"  agree  that  they  will  pay  all  that  part 


The  Proposed  Ordinance  with  Notes.  43 

of  the  construction  and  future  maintenance  of  the  Chestnut 
Avenue  Viaduct  provided  for  by  the  provision  of  Section  19, 
Paragraph  (a),  of  Ordinance  No.  2336,  approved  July  7th,  1909, 
or  secure  from  the  Kansas  City  Terminal  Railway  Company 
the  consent  to  the  use  of  said  Viaduct. 

Said  line,  when  completed,  shall  be  operated  as  a  north 
and  south  line  in  extension  of  the  Prospect  Avenue  line  south 
of  15th  Street.  If  "The  Companies"  shall  fail,  neglect  or  re- 
fuse to  secure  said  consents,  then  any  citizen  shall  have  the 
right  to  secure  the  same,  and  "The  Companies"  agree  that 
when  said  consents  have  been  secured,  they  will  build  and 
thereafter  operate  said  line.  Provided,  however,  that  "The 
Companies"  shall  not  be  required  to  construct  said  track  until 
said  Chestnut  Avenue  Viaduct  is  completed,  and  all  streets  on 
which  said  street  railway  line  is  to  be  constructed  shall  have 
been  opened  and  graded. 

This,  however,  is  to  be  construed  as  being  in  part,  as  a 
compliance  with  the  provisions  of  Section  2  of  this  ordinance 
on  the  part  of  "The  Companies." 

COMPANIES  TO  PAVE  BETWEEN  AND  OUTSIDE  OF 

TRACKS. 

Section  3.  "The  Companies"  shall  pave  their  tracks  and 
bettveen  the  rails  of  the  tracks  and  for  eighteen  (18)  inches 
outside  of  the  outside  rails  of  their  tracks  with  such  material 
a^  the  Board  of  Public  Works  may  direct,  and  shall  keep  the 
space  above  indicated  constantly  in  good  repair,  and  on  the  §8 
failure  of  "The  Companies"  to  keep  the  same  in  repair  the 
Board  of  Public  Works  may  cause  the  same  to  be  done  and 
charged  against  the  operating  expenses  of  "The  Companies." 

Where  a  cable  line  now  exists  rvhich  is  to  be  replaced 
"'ith  an  electric  road  as  herein  provided,  the  present  paving, 
if  in  good  repair,  may  remain  until  said  road  is  electrified. 
All  of  the  foregoing  to  be  done  in  a  manner  satisfactory  to  the 
Board  of  Public  Works  and  under  its  supervision. 

If  at  the  time  any  extension  herein  provided  for  is  made 
the  streets  are  either  macadamized  or  not  paved,  **The  Com- 
panies** are  required  to  pave  bettveen  their  tracks  and  the 
rails  of  their  tracks  and  for  eighteen  (18)  inches  outside  of 
the  outside  rails  of  their  tracks,  tvith  such  materials  as  may 
be  designated  by  the  Board  of  Public  Works  at  the  time  of 
the  construction  of  such  extension. 

NOTE. 

This  section  omits  a  clause  which  Is  in  the  Peace  Agreement 
obligating  the  Street  Railway  Company  to  repave  streets  with 
the  same  material  whenever  the  rest  of  the  street  is  repaved. 
This  is  very  important,  as  it  costs  the  Railway  Company  about 
$20,000  a  mile  to  repave  its  double  trackage. 


44  The  Proposed  Ordinance  with  Notes. 

WATCHMEN   TO   BE   PROVIDED   BY    "THE   COMPANIES'' 
AT   CROSSINGS   AND    DANGEROUS   CURVES. 

Section  4.  At  all  points  where  said  street  railway  tracks 
cross  the  tracks  of  any  steam  railway  company,  ivatchmen 
^^^  shall  be  constantly  stationed  and  kept  to  perform  such  dutief< 
as  may  he  prescribed  by  ordinance;  but  the  City  shall  pass 
necessary  ordinances  reuqiring  the  steam  railway  companies 
to  join  in  the  performance  of  this  duty,  and  in-  the  payment 
for  the  service;  but  if  said  railway  companies  fail  to  comply 
with  the  terms  of  such  ordinances,  then  ''The  Companies*'  shall 
station  such  watchmen  as  aforesaid.  Watchman  shall  be  placed 
by  ''The  Companies*'  at  all  points  where  their  lines  of  track 
intersect,  cross  or  form  a  junction  and  at  dangerous  curves 
between  the  Missouri  River  and  Thirteenth  Street  and  between 
McGee  Street  and  Wyandotte  Street,  and  at  such  other  points 
within  the  city  as  may  be  required  by  a  reasonable  ordinance. 
It  is  understood  by  this  that  the  conductors  or  gripmen  can 
not  act  as  flagmen  or  watchmen  without  the  consent  of  the 
City.  "The  Companies"  shall  stop  their  cars  for  the  purpose 
of  taking  on  and  letting  off  passengers  before  they  shall  cross 
a  street  or  intersecting  lines.  The  City  reserves  the  Hght  to 
control  and  regulate  by  reasonable  ordinance  all  the  matters 
mentioned  in  this  section. 

"THE  COMPANIES"  TO  PROVIDE  ELECTRIC  ARC  LIGHTS. 


§12 


Section  5.  Electric  Arc  Lights  shall  be  maintained  by 
"The  Companies'*  at  all  points  where  their  lines  cross  the  line^ 
of  any  steam  railway  company,  but  the  City  shall  pass  neces- 
sary ordinances  requiring  the  steam  railway  companies  to  bear 
their  share  of  the  expenses  of  said  lights,  but  failure  of  said 
steam  railway  companies  to  comply  with  this  ordinance  shall 
not  relieve  "The  Companies"  of  the  duty  aforesaid.  And  at 
all  points  where  the  lines  of  "The  Companies"  intersect,  cross, 
or  make  a  junction  ivith  each  other,  and  at  dangerous  curves, 
they  shall  maintain  arc  lights. 

STEAM   RAILWAYS  TO  PAY  PART  OF   COSTS  OF 
WATCHMEN  AND  LIGHTS. 

Section   6.     Where   a   line   of  street   railway   crosses   the 

,.^  tracks  of  a  steam  railivay  company,  the  City  shall,   by  ordi- 

§-*-^  nance,  direct  the  payment  by  the  steam  railway  company  of 

at  least  one-half  of  the  expense  of  watchmen  and  lights,  as 

provided  in  Sections   U   arid   5   hereof,   and   where    there   are 


.The  Proposed  Ordinance  with  Notes.  45 

crossed  more  than  two  tracks  of  one  or  more  steam  raihvays, 
then  the  City  shall,  by  ordinance,  direct  that  the  steam  rail- 
way companies  shall  pay  as  much  over  one-half  of  such  ex- 
pense as  is,  in  the  opinion  of  the  law-making  power  of  the 
City,  reasonable  and  just  When  "The  Companies,"  in  any  in- 
stance, pay  the  whole  expense,  as  provided  in  said  sections, 
then  they  may,  in  the  name  of  the  City,  but  at  their  expense, 
maintain  such  legal  proceedings  against  the  steam  railway 
companies  as  may  be  necessary,  to  require  them  to  perform 
their  duties  and  refund  to  the  street  railway  companies  the 
amount  due  them, 

ELECTRIC  POWER  FOR  POLICE  AND   FIRE  ALARM 

SYSTEM  TO  BE  FURNISHED  BY  "THE 

COMPANIES"  FREE. 

Section  7.     '*The  Companies"  shall  furnish  free  of  charge  §14 
electric  power  to  charge  the  storage  batteries  of  the  police  and 
fire  alarm  system  of  the  City. 

SUBURBAN   CARS  OPERATED   IN   THE   THE   CITY- 
CONDITION. 

Section  8.  "The  Companies"  shall  make  arrangements 
with  the  managements  of  all  suburban  lines  not  entering  the 
City,  which  are  now  or  may  hereafter  construct  their  lines  §15 
to  connect  at  the  City  limits  (upon  request  by  the  manage- 
ment of  the  suburban  lines),  by  which  "The  Companies"  will 
place  their  crews  in  charge  of  the  cars  of  said  suburban  com- 
panies at  the  point  of  connection  and  carry  the  cars  as  their 
own,  with  the  passengers,  through  to  substantially  the  center 
of  the  business  portion  of  Kansas  City,  Missouri,  All  passen- 
gers shall  pay  the  same  fare  and  be  entitled  to  the  same  trans- 
fer privileges  as  though  they  had  taken  regular  passage  on 
the  cars  of  the  street  railway  companies.  "The  Companies" 
shall  have  the  right  to  collect  all  fares  for  passage  on  their 
roads.  "The  Companies"  shall  pay  to  the  suburban  companies 
for  the  use  of  their  cars  one  cent  for  each  passenger  turned 
over  to  them  by  the  suburban  companies,  and  one  cent  for  each 
outgoing  passenger  turned  over  to  the  suburban  companies  by 
"The  Companies";  and  "The  Companies"  shall  in  a  prompt  and 
businesslike  way  return  said  cars  to  the  place  tvhere  said  cars 
were  turned  'over  to  them.  Cars  of  suburban  lines  must  be  so 
constructed  as  to  be  suitable  for  use  on  the  street  railway 
tracks  with  convenience  and  safety. 

If  said  suburban  cars  carry  United  States  mail,  or  light 


46  The  Proposed  Ordinance  with  Notes.    • 

packages,  of  the  character  described  in  Section  9  hereof,  then 
the  same  shall  he  carried  and  delivered  at  the  nearest  point 
on  the  lines  of  "The  Companies"  to  their  destination,  and  the 
compensation  of  *'The  Companies"  for  said  services  shall  be 
governed  by  the  rules  and  regulations  set  forth  in  Section  9 
of  this  ordinance.  But  the  City  reserves  the  right  to  prescribe 
by  ordinance  the  kind  of  packages  which  shall  be  carried  on 
said  suburban  cars  within  the  City,  or  to  prohibit  the  same  if 
it  so  desires. 

If  suburban  lines  cannot  connect  with  the  lines  of  ''The 
Companies"  at  the  City  limits,  then  they  shall  have  the  right  to 
connect  with  their  tracks  within  and  as  near  the  city  limits 
as  practicable,  and  any  Company  operating  a  suburban  line, 
the  tracks  of  which  do  not  reach  or  extend  to  and  therefore 
cannot  be  connected  with  any  line  of  "The  Companies'*  at  or 
within  the  City  limits,  but  which  tracks  intersect  or  may  be 
connected  at  the  terminus  of  such  suburban  line  with  any  line 
of  "The  Companies"  outside  of  the  City  limits,  when  such  con- 
nection can  be  made,  shall  have  such  right;  but  no  such  sub- 
urban cars  shall  be  permitted  to  run  over  any  street  within  the 
corporate  limits  of  Kansas  City  without  the  consent  of  the  City 
expressed  by  ordinance.  Provided,  such  ordinance  shall  not 
be  necessary  as  to  any  suburban  line  whose  cars  are  now  being 
operated  over  any  of  the  streets  of  the  city  under  existing  con- 
tracts between  such  suburban  line  and  the  Company. 

NOTE. 

The  first  two  paragraphs  of  section  8  are  copied  verbatim 
and  aparently  without  due  consideration  ^  from  the  same  parar  . 
graphs  in  section  15  of  the  Peace  Agreement.  It  provides  in  the 
first  paragraph  that  all  passengers  shall  pay  the  same  fare  and 
be  entitled  to  the  same  transfer  privileges  as  though  they  had 
taken  regular  passage  on  the  cars  of  the  Street  Railway  Com- 
pany. I  believe  that  the  courts  will  construe  this  mean  that 
€very  passenger  thus  hauled  shall  pay  the  full  cash  fare  of  five 
«ents.  In  copying  this  clause  if  the  Company  Intended  that  such 
passengers  should  have  strip-ticket  privileges  or  the  right  to 
use  such  tickets  purchasable  twenty-five  for  a  dollar  or  six  for  a 
quarter,  it  should  have  made  this  clear  in  the  above  section  8  by 
so  stating,  as  the  term  "fares"  does  not  include  strip  tickets — 
See  Philadelphia  decision. 

RtGHT  AND  DUTY  OF  COMPANY  TO  CARRY  COMMODI- 
TIES, LIGHT  PARCELS  AND  PACKAGES.— RESERVA- 
TIONS  BY  CITY  TO  CONTROL  CHARGES. 

Section   9.     ''The   Companies"  may   carry   on  their  lines 

§16  light  packages  or  parcels  not  in  the  possession  of  a  passenger, 

but  this  shall  not  be  done  to  the  interference  with  the  passen- 


The  Proposed  Ordinance  with  Notes.  47 

ger  traffic.  Provided,  further,  "The  Companies''  are  required 
(except  between  the  hours  of  6:30  a.  m.  and  9:00  a.  m.,  and 
4:30  p.  m.  and  7:00  p.  m.)  to  receive  any  and  all  cars  carry- 
ing dairy  products,  vegetables,  or  fruit,  or  farm  products,  and 
convey  the  same  to  public  market  places,  that  are  now  estab- 
lished, or  that  may  be  hereafter  established,  or  to  distributing 
points  that  may  be  hereafter  designated  by  ordinance,  and 
''The  Companies"  are  required  to  receive  said  cars  from  sub- 
urban lines  which  connect  with  their  lines,  or  use  the  lines  of 
**The  Companies"  by  running  their  cars  over  them,  or  exchang- 
ing passengers,  and  the  said  "Companies"  can  only  charge  the 
actual  cost  of  transportation,  plus  ten  per  cent  of  said  cost,,  for 
hauling  and  transporting  said  cars.  And  "The  Companies"  are 
prohibited  from  entering  into  any  contracts  for  transporting 
the  suburban  cars  of  other  lines  or  companies,  unless  said  sub- 
urban lines  or  companies  enter  into  a  contract  with  Kansas 
City  to  make  the  same  terms  and  rates  for  the  transportation 
of  dairy  products,  vegetables,  fruits  and  farm  produce,  with 
persons,  corpoiations  or  individuals  situated  along  and  con- 
tiguous to  their  lines,  and  agree  to  transport  the  cars,  whether 
owned  by  companies  or  individuals,  according  to  the  above 
terms. 

This  contract  is  made  for  the  benefit  of  persons  and  cor- 
porations that  may  hereafter  desire  to  transport  dairy  prod- 
ucts, vegetables,  and  farm  produce  into  the  limits  of  Kansas 
City,  and  any  one  injured  thereby  shall  have  a  right  of  action 
against  the  Companies,  or  against  said  suburban  lines  for  re- 
fusing to  carry  out  the  above  terms,  and  any  person  or  per- 
sons believing  that  they  are  discriminated  against  by  "The 
Companies"  or  any  suburban  lines  may  go  into  the  courts  and 
have  a  full  investigation  of  charges  of  transportation  and  the 
court  may  enter  judgment  regulating  charges  in  pursuance  to 
this  section. 

The  rates  fixed  by  "The  Companies"  and  by  said  suburban 
lines  for  such  service  must  be  uniform  and  reasonable  and  the 
City  reserves  to  itself  the  right  by  ordinance  to  regulate  this 
privilege.    Nothing  in  this  section  shall  be  so  construed,  how^ 
ever,  as  affecting  the  right  of  the  Kansas  City  and  WestportP^ 
Belt  Railway  Company  to  continue  to  carry  any  and  all  classes! 
of  freight  and  generally  to  do  a  freight  business. 

The  purpose  and  spirit  of  this  section  is  to  give  the  inhab- 
itants of  Kansas  City  the  benefit  of  rapid  transportation  and 


48  The  Proposed  Ordinance  with  Notes. 

to  enable  dairy  products,  fruits,  vegetables  and  farm  produce 
to  be  brought  in  the  least  possible  time,  and  at  the  least  pos- 
sible cost,  into  their  midst,  for  sale  and  distribution. 


Under  this  provision  it  will  be  necessary  for  the^  suburban 
lines  now  or  hereafter  desiring  to  makea  contract  for  the  hauling 
of  its  passengers  over  the  Metropolitan's  tracks  also  to  equip 
itself  with  freight  cars  as  feeders  for  the  Metropolitan  Street 
Railway  freight  monopoly. 

The  actual  cost  of  transportation  that  the  suburban  lines  will 
be  compelled  to  pay  for  the  carrying  of  such  freight  over  the 
streets  will  be  whatever  the  Metropolitan  sees  fit  to  charge  for 
such  transportation. 

Under  this  section  9  there  is  provision  that  all  suburban  com- 
panies can  be  required  to  assist  the  Metropolitan  Street  Railway 
Company  in  building  up  this  freight  and  produce  commission 
monopoly  or  else  the  Metropolitan  Street  Railway  Company  can 
refuse  to  permit  such  suburban  companies  to  carry  their  passen- 
ger cars  oved  the  Campanies'  tracks  as  provided  under  section  8. 

Read  these  sections  over  carefully  and  see  if  this  is  not  a 
correct  interpretation. 

Is  it  possible  under  this  section  that  the  Street  Railway, 
may  hereafter,  under  consent  given  by  the  Common  Council  by 
ordinance,  establish  their  own  distributing  points  or  sub-markets 
all  over  the  City  and  carry  dairy  products,  vegetables,  fruit  or 
farm  products  over  their  own  lines  for  such  rates  as  the  Com- 
mon Council  may  designate  to  such  distributing  points  and  sell 
in  open  competition  with  our  merchants  engaged  in  selling  such 
products  to  the  people  of  Kansas  City?  We  submit  thi^  for 
consideration  of  our  produce  commission  merchants  and  market 
men. 

It  can  clearly  be  read  between  the  lines  that  the  Company  is 
preparing  a  plan  to  provide  for  us  its  own  monopolistic  sales 
places  and  distributing  points.  These  distributing  points  under 
the  terms  of  the  proposed  ordinance  can  at  any  time  in  the  future 
be  legally  designated  by  such  future  Common  Council  as  the 
Company  may  be  able  to  pursuade  to  grant  them  the  favor. 

"THE  COMPANIES"  TO  JOIN  IN  CONSTRUCTION  OF 
VIADUCTS  AND  BRIDGES. 

Section  10.     Wherever  the  City  shall  by  ordinance  require 

»1^  the  building  of  a  viaduct  where  "The  Companies* "  lines  cross 

at  grade  a  line  of  steam  railroad,  *'The  Companies*'  shall  join 

in  said  construction,  and  in  the  future  maintenance  thereof, 

and  pay  their  reasonable  proportion  of  the  cost  thereof. 

Such  viaduct  shall  be  without  cost  to  the  City,  but  the 
»team  roads  shall  be  required  to  pay  their  fair  share  of  the 
cost  thereof.  Provided,  also,  that  where  a  bridge  shall  be  re- 
.quired  for  a  crossing  over  any  water  course  or  ravine  "The 


UNIVERSITY 

Of 

The  Proposed  Ordinance  with  Notes.  49 

Companies"  shall  bear  such  proportion  of  the  cost  and  mainte- 
nance as  the  floor  space  used  by  them  shall  bear  to  the  whole 
of  such  floor  space. 

GRADING  AND  REGRADING  STREETS— WAIVER  OF 
DAMAGE  BY  COMPANIES. 

Section  11.  Whenever  pursuant  to  the  authority  of  Kan- 
sas City,  Missouri,  any  part  of  the  route  upon  which  "The  ^25 
Companies''  or  their  successors  or  assigns  shall  construct  or 
may  have  constructed  their  lines  shall  be  graded  or  re-graded, 
''The  Companies,"  their  successors  or  assigns,  agree  for  them- 
selves, their  successors  or  assigns,  to  construct  and  lay  their 
tracks  upon  the  street  as  regraded,  and  shall  waive  all  claims 
for  damages  for  such  regrading  or  change  of  grq.de. 

NOTE. 

Straws  sometimes  show  the  way  the  wind  is  blowing,  and 
sometimes  from  little  things  we  can  gather  the  real  intent  of 
the  parties  to  a  contract  when  we  consider  the  form  of  the  con- 
tract presented  to  us  for  our  approval. 

In  the  matter  of  grading  and  regrading  streets  it  appears  in 
■ectlon  25  of  the  Peace  Agreement  whenever  any  part  of  the 
rout^  upon  which  the  company  has  constructed  its  lines  shall 
be  ^aded  or  regraded  the  grantees  of  the  ordinance  agree 
to  construct  and  lay  their  tracks  upon  the  street  as 
graded  or  regraded,  and  that  they  will  waive  all  damages 
for  all  such  regrading.  This  Section  25  is  copied  verbatim  in 
the  proposed  agreement  in  section  11  of  this  ordinance,  with  this 
exception,  that  section  25  of  the  Peace  Agreement,  provides 
that  the  company  shall  do  this  work  "at  their  own  expense," 
and  in  the  proposed  ordinance,  section  11,  the  words 
"at  their  own  expense"  are  deliberately  left  out,  leaving  the 
company  the  opportunity,  if  it  so  desires  and  can  so  have  the 
matter  construed,  to  put  the  expense  on  either  the  property 
owner  or  the  city,  unless  the  company  has  some  such  idea  in 
mind  it  is  difficult  to  imagine  why  these  words  "at  their  own 
expense"  should  have  been  omitted.  Exactly  the  same  thing 
occurs  in  the  matter  of  the  removal  of  tracks,  building  sewers, 
and  other  public  works  in  the  Peace  Agreement.  At  section  35 
it  is  provided  in  the  Peace  Agreement  that  whenever  it  shall  be 
necessary  to  remove  the  tracks  of  the  railway  company  for  the 
purpose  of  repairing  water  pipes,  constructing  sewers,  or  any 
other  public  purposes  whatever,  the  said  company  shall,  upon 
notice  from  the  city  remove  its  tracks  and  replace  the  same. 
This  provision  is  copied  in  section  16  of  this  proposed  ordinancs, 
but  it  is  interesting  to  note  that  whereas  the  Peace  Agreement 
provides  that  this  work  shall  be  done  at  the  expense  of  the 
street  railway  company  the  words  "at  their  own  expense"  are 
deliberately  left  out  in  said  section  16  of  the  proposed  ordinance. 


50  The  Proposed  Ordinance  with  Notes. 

INDEMNITY  CLAUSE. 

Section  12.  In  constructing,  repairing  and  operating  their 
§26  street  railways,  ''The  Companies''  shall  use  every  reasonable 
and  proper  precaution  to  avoid  damage  to  person  or  property, 
and  shall  at  all  times  respond  to  the  City  of  Kansas  City  for, 
and  save  it  harmless  from,  all  and  every  damage,  injury  or; 
loss,  cost  or  expense,  caused  or  occasioned  by  reason  of  any 
act  or  omission  of  ''The  Companies''  iri  constructing,  recon- 
structing, repairing  or  operating  of  said  railways,  or  in  pav- 
ing, repaving  or  repairing  said  streets,  or  by  reason  of  any 
and  every  act  done  under  this  ordinance, 

LOCATION   OF  CARRYING  POLES   AND   WIRES   AP- 
PROVED BY  BOARD  OF  PUBLIC  WORKS. 


§27 


Section  13.  Hereafter  the  location  of  all  carrying  poles 
and  wires  and  the  kind  and  character  of  same  shall  be  first 
approved  by  the  Board  of  Public  Works.  "The  Companies,*' 
>  their  successors  or  assigns,  after  having  excavated  or  incum- 
bered any  street  or  part  thereof,  shall  at  once  restore  and 
leave  the  same  in  as  good  condition  as  it  wa^  at  the  time  of 
commencing  such  work,  and  shall  pave  as  aforesaid.  The  cen- 
tral line  of  the  spaces  between  the  tracks  shall  coincide,  as 
nearly  as  practicable,  with  the  central  line  of  the  streets  on 
which  same  is  located;  and  the  space  between  the  inside  rails 
of  the  two  tracks  shall  be  as  directed  by  the  City  Engineer 
and  the  Board  of  Public  Works,  on  streets;  and  on  boulevards, 
by  the  Board  of  Park  Commissioners. 

LIABILITY  OF  "THE  COMPANIES"  FOR  INJURY  TO 
WATER  PIPES,  TREES  OR  OTHER  PROPERTY. 

Section  14.  "The  Companies"  shall  not  in  the  construc- 
§28  tion,  maintenance  or  operation  of  any  of  their  roads  or  power 
plants  do  or  permit  anything  to  be  done  whereby  the  water 
pipes  or  conduits  or  other  property  of  the  City  or  the  trees 
along  the  streets  of  the  City  shall  be  damaged,  and  "The  Com- 
panies*' shall  respond  for  such  damages,  if  any,  to  the  City, 

RESERVATION  BY  CITY  OF  RIGHT  TO  PERMIT  OTHER 

COMPANIES  TO  USE  THREE  BLOCKS  OF  "THE 

COMPANIES"   TRACKS. 


§30 


Section  15.  The  City  of  Kansas  City  expressly  reserves 
the  right  to  allow  and  permit  any  other  street  railway  com- 
pany, or  suburban  railway  company,  to  run  cars  operated  solely 


The  Proposed  Ordinance  with  Notes.  51 

by  it  over  and  along  the  tracks  of  "The  Companies"  for  the 
distance  of  three  consecutive  blocks,^  or  less,  on  such  terms  and 
with  and  for  such  compensation  to  *'The  Companies**  as  may 
he  prescribed  and  determined  by  a  reasonable  ordinance. 

Nothing  in  this  ordinance  contained  is  intended  to  or  shall 
he  held  or  construed  in  any  ivay  to  abridge  any  right  which 
may  exist  under  existing  ordinance  of  other  companies  to  use 
the  track  of  any  of  ''The  Companies"  parties  to  this  agree- 
ment, for  three  (3)  consecutive  blocks  of  the  lines  of  any  said 
compariies,  nor  to  run  over  and  use  the  tracks  of  the  so-called 
Delaware  and  Main  Street  loop;  or  to  take  away  or  abridge 
any  right  which  the  city  has  acquired  to  allow  any  other  street 
railway  company  to  use  the  tracks  on  Main  Street,  or  any  part 
of  the  same,  constructed  under  the  franchise  granted  to  the 
Metropolitan  Street  Railway  Company  by  the  provisions  of 
ordinance  of  Kansas  City,  No.  37969,  approved  October  7,  1907. 
The  City  expressly  reserves  all  rights  that  it  has  to  permit 
other  railroads  to  use  the  tracks,  poles,  wires  and  electrical 
currents  of  **The  Companies"  and  to  enforce  all  such  rights 
without  unreasonable  delay,  but  the  right  to  use  the  tracks 
under  this  section,  shall  not  be  construed  to  add  anything  to 
the  present  rights  of  the  City,  under  existing  ordinance  and 
all  limitations  in  existing  ordinances  shall  continue  in  force, 
both  as  to  the  City  and  "The  Companies." 


REMOVAL    OF    TRACKS    FOR    BUILDING    SEWERS,    OR 

OTHER  PUBLIC  WORKS.— "THE  COMPANIES" 

TO  BEAR  EXPENSE  THEREOF. 

Section  16.  Whenever  it  shall  be  necessary  to  remove  the 
tracks  or  the  rails  of  the  tracks  of  any  of  ''The  Companies' " 
lines  for  the  purpose  of  laying  or  repairing  water  pipes,  con-  W^^ 
structing  sewers,  or  for  any  public  purpose  wliatever,  "The 
Companies'*  shall  promptly,  upon  notice  from  the  City,  remove 
said  tracks  and  replace  the  same,  provided,  however,  that  the 
City  in  doing  said  work  shall  use  all  reasonable  expedition  so 
as  to  interrupt  travel  upon  said  roads  as  little  as  is  reasonably 
possible. 


TRACKS  TO  BE  LAID  ON  ESTABLISHED  GRADES. 

Section  17.    It  is  understood  that  all  street  railway  tracks 
constructed  under   the  privileges   granted   by   this   ordinance,  §36 
shall   be   laid   upon   the   established   grades   of   the   respective 


52  The  Proposed  Ordinance  with  Notes. 

streets  and  "The  Companies"  shall  not  be  required  to  lay  their 
tracks  until  the  street  is  graded  to  the  established  grade.  The 
City  shall  establish  such  grades  where  none  have  been  estab- 
lished when  requestd  by  ''The  Companies" 

MOTIVE  POWER  . 

Section  18.  The  motive  power  to  be  used  in  the  operation 
of  said  street  railways  by  "The  Companies"  and  each  and  all  of 
them,  shall  be  electricity  or  any  improved  power  or  method  of 
using  the  same  that  may  hereafter  come  in  general  use,  that 
may  be  prescribed  by  the  City  (with  the  single  and  temporary 
exception  of  what  is  known  as  the  Twelfth  Street  Cable  Line, 
now  in  operation  from  Twelfth  and  Washington  Streets  to 
Sixteenth  and  Genesee,  the  conversion  of  which  to  electricity 
is  provided  for  in  this  ordinance). 

USE  OF  POLES,  CONDUITS,  ETC. 

Section  19.  "The  Companies"  may  use  their  trolley  poles, 
feeder  poles,  trolley  wires,  feeder  wires  and  conduits  for  all 
purposes  solely  connected  with  the  operation  of  thir  street  rail- 
ways, such  as  power,  light,  heat,  telephonic  and  other  signals. 
For  such  purposes  "The  Companies"  may  connect  such  con- 
duits, poles  and  wires  with  their  transmission  and  feeder  wires, 
power  plants,  substations,  car  houses,  repair  shops,  or  other 
property  of  "The  Companies"  and  with  any  transmission, 
feeder  or  other  wires  of  any  other  individuals  or  corporations. 
JOINT  USE  WITH  THE  CITY. 

The  said  City  shall  have  the  right  without  the  payment  of 
any  compensation  therefor,  during  the  life  of  this  grant,  to 
use  the  poles  of  "The  Companies"  to  carry  the  signal,  telephone, 
telegraph  and  electric  light  wires  and  lamps  then  the  property 
of  the  City,  for  its  own  use.  The  Transmission  wires  of  the 
said  City  for  such  purposes  shall  be  placed  on  the  poles  of 
"The  Companies"  on  that  side  of  each  street  or  public  way 
(where  poles  are  located  on  both  sides  thereof)  designated  by 
the  said  Board  of  Public  Works  without  cost  or  expense  to 
"The  Companies"  but  "The  Companies"  shall  repair  and  main- 
tain their  poles  as  one  of  the  operating  expenses  of  their  street 
railway  system  under  this  ordinance;  provided,  that  the  City 
shall  indemnify  and  save  harmless  "The  Companies"  against 
and  from  all  damages,  judgments,  costs  or  expenses  which 
"The  Companies"  may  suffer  by  reason  of  any  negligence  of 
the  said  City  in  installing,  maintaining  or  using  their  said 
wires  and  lamps  upon  said  poles. 


The  Proposed  Ordinance  with  Notes.  53 

COMPANIES  TO  MAINTAIN  OFFICE  IN  CITY. 

Section  20.  ''The  Companies"  shall  not  remove  their  prin- 
cipal office  or  any  of  their  books  (except  bond  registry  and 
stock  transfer  books,  of  which  duplicate  copies  shall  be  kept 
at  its  office  in  Kansas  City),  records,  accounts,  contracts  or 
original  vouchers  of  receipts  and  expenditures  beyond  the  limits 
of  said  City,  and  shall  maintain  an  office  within  said  City  so 
long  as  "The  Companies"  continue  to  operate  any  part  of  the 
street  railways  maintained  and  provided  for  in  this  ordinance, 
under  the  provisions  hereof. 

LEASE,  ASSIGNMENTS  OR  CONTRACTS. 

Section  21.  No  lease  or  operating  agreement  or  traffic 
arangement  contract  for  the  purchase  or  sale  of  power,  light 
or  heat,  or  contract  of  any  nature  whatsoever,  and  no  assign- 
ment (except  by  the  one  company  to  the  other,  or  by  way  of 
mortgage  or  trust  deed  under  the  foregoing  provisions  and 
limitations  of  this  ordinance)  shall  be  made  by  "The  Com- 
panies" without  the  consent  of  Kansas  City  expressed  by  ordi- 
nance, provided,  that  th^'s  section  shall  not  be  construed  as 
impairing  or  in  any  manner  interferirg  with  any  contract 
now  ex^* sting  between  The  Kansas  CHv  Western  Railway  Com- 
pany, or  anv  other  comoany  and  "The  Companies"  under  or 
by  which  "The  Companies"  have  promised  to  operate  or  fur- 
nish power  to  operate  any  of  the  cars  of  such  other  companies. 

COMPANIES   TO    PAY   COST   OF   TWELFTH    STREET 

VIADUCT. 

Section  22.  Twelfth  Street,  between  Broadway  and  Lin- 
coln Strets,  shall  by  the  City  be  improved  for  its  full  width, 
as  it  sees  fit,  provided  that  such  improvements  shall  include  a 
viaduct  from  a  point  at  or  near  Lincoln  Street  to  a  point  at 
or  near  Mulberry,  Hickory,  Liberty  or  Wyoming  Street,  as  may 
be  finally  determined  by  the  City,  with  poles,  lamps  and  wires 
for  lighting  and  proper  space  for  the  construction  of  a  double 
track  street  railway  thereon. 

Such  viaduct  may,  if  the  City  so  determine,  have  an  upper 
and  lower  level  and  shall  be  constructed  according  to  plans 
and  specifications  to  be  approved  by  the  Board  of  Public  Works, 
"The  Companies"  may,  however,  have  joint  supervision  with 
the  City,  of  the  street  railway  part  of  the  work,  under  such 
reasonable  arrangements  between  them  and  the  City,  as  may 
be  agreed  upon. 


54  The  Proposed  Ordinance  with  Notes. 

The  entire  way  when  thus  improved,  shall  become  and  be 
a  public  street  upon  which  there  shall  exist  the  same  rights 
of  "The  Companies,"  to  reconstruct,  maintain  and  operate  their 
lines  of  railway  as  they  have  upon  other  streets  and  public 
places  of  the  City,  except  that  "The  Companies"  shall  be  con- 
fined to  twenty  (20)  feet  in  width  of  said  roadway  on  the  one 
side  or  the  other  thereof,  as  may  be  determined  by  the  Board 
of  Public  Works. 

When  said  viaduct  is  completed  the  roadway  between  the 
street  railway  tracks  and  for  eighteen  (18)  inches  outside 
thereof,  shall  be  maintained  by  "The  Companies,"  and  the  bal- 
ance of  the  roadway  by  the  city.  The  viaduct  structure  exclu- 
sive of  the  roadway  shall  be  maintained  by  the  City  and  "The 
Companies"  jointly  and  at  an  equal  expense. 

The  entire  enterprise  of  which  the  building  of  said  viaduct 
forms  a  part  involves  the  changing  the  present  grade  of  Twelfth 
Street  substantially  as  provided  in  Ordinance  Number  37058 
and  condemning  ground  at  or  near  the  West  end  of  said  viaduct 
to  afford  proper  approaches  thereto,  so  that  said  viaduct  when 
completed,  shall  conform  to  the  new  grade,  and  constitute  a 
continuation  of  Twelfth  Street. 

And  "The  Companies"  do  agree  that  of  the  cost  of  such 
entire  enterprise,  they  will  pay  all;  that  is  to  say,  all  of  the 
following  items:  (a)  Damages  to  property  by  changing  grade 
of  Twelfth  Street  and  of  intersecting  streets  to  conform  thereto. 

(b)  The  cost  of  grading  Twelfth  "Street  and  intersecting  streets. 

(c)  Viaducts  at  intersecting  streets  across  Twelfth  Street, 
made  necessary  by  changing  grade  of  Twelfth  Street,  (d) 
Condemnation  of  ground  for  approaches  to  viaduct,  (e)  Dam- 
age to  property  by  reason  of  building  said  viaduct  structure. 
(f )  The  cost  of  said  viaduct  structure,  including  all  piers,  abut- 
ments and  approaches  thereto,  all  as  the  plans  for  said  enter- 
prise have  been  or  may  hereafter  be  finally  approved,  either 
as  a  whole  or  separately,  by  the  Board  of  Public  Works.  Pro- 
vided, that  the  total  amount  so  paid  by  "The  Companies"  shall 
not  exceed  one  million  three  hundred  and  fifteen  thousand 
($1,315,000)  Dollars.  Subject,  however,  to  the  provisions  of 
Section  Number  Ic  of  this  Ordinance. 

TWELFTH    STREET    LINE   TO    BE   ELECTRIFIED. 

Section  23.  "The  Companies"  agree  to  electrify  that  por- 
tion of  Twelfth  Street  over  which  cable  cars  are  now  being 
operated  by  the  time  the  viaduct  referred  to  in  the  foregoing 


The  Proposed  Ordinance  with  Notes.  5S 

section  is  completed ;  after  which  time  "The  Companies'  "  cars 
shall  be  operated  in  continuous  passage  over  the  entire  length 
of  said  Twelfth  Street  line. 

CITY  TO  RESERVE  POLICE  POWER  AND  RIGHT  OF 
REGULATION  AND  CONTROL. 

Section  24.  Nothing  in  this  contract  shall  take  away  from  §24 
the  City  any  right  or  power  o^  to  regulation  and  control  of 
any  lines  of  ''The  Companies''  reserved  in  the  charter  of  the 
City  and  which  now  exists,  but  any  such  right  or  power  shall 
co7itinue  as  it  existed  at  the  time  of  making  this  contract. 
Neither  is  it  intended  to  take  away  any  of  the  rights  of  ''The 
Companies"  as  heretofore  existing,  except  as  they  are  herein 
expressly  or  by  acts  done  hereunder  changed,  modified,  quali- 
fied, affected  or  abrogated,  but  except  as  aforesaid,  rights  shall 
continue  as  they  existed  at  the  time  of  making  this  contract. 

Nothing  in  this  ordinance  contained  shall  be  construed  as 
depriving  the  said  City  of  the  right  of  exercising  any  police 
power  which  it  would  have  possessed  or  enjoyed  had  this  ordi- 
nance not  been  granted. 

The  enumeration  herein  of  special  requirements  and  spe- 
cific regulations  shall  not  be  taken  or  held  to  imply  the  relin- 
quishment by  the  City  of  its  power  to  make  other  require- 
ments or  regulations  and  the  said  City  hereby  expressly  re- 
serves the  right  to  make  all  regulations  which  may  be  necessary 
to  secure  in  the  most  ample  manner  the  safety,  health  and 
accommodation  of  the  public,  including,  among  other  things, 
the  right  to  pass  and  enforce  ordinances  to  protect  the  public 
from  danger  and  inconvenience  in  the  management  and  opera- 
tion of  street  railways  throughout  the  said  City  and  the  right 
to  make  and  enforce  all  such  regulations  as  shall  be  reasonably 
necessary  to  secure  adequate  and  sufficient  street  railway  ac- 
commodations for  the  people  and  secure  their  comfort  and 
convenience. 

The  City  Council  may  vest  any  and  all  matters  of  admin- 
istration under  this  ordinance  in  a  department  or  bureau  of 
local  transportation  or  in  its  City  Engineer  or  in  any  official 
or  employee  of  said  City. 

REMOVAL  OF  TRACKS. 

Section  25.     If  "The  Companies"  shall  hereafter  cease  to 
operate  over  any  of  their  tracks  or  any  portion  thereof,  they  §22 
shall  remove  such  unused  tracks  upon  the  order  of  the  City 
Council.   Failure  to  operate  cars  for  the  carriage  of  passengers 


56  The  Proposed  Ordinance  with  Notes. 

at  least  once  each  way  within  every  hour  of  each  day  between 
the  hours  of  6  a.  m.  and  8  p.  m.  over  any  part  of  a  street  or 
public  place  or  right  of  way  in  which  the  tracks  of  "The  Com- 
panies" are  laid  shall  be  treated  as  a  cessation  of  operation  of 
its  tracks  in  such  part  of  street  or  public  place  or  right  of 
way  within  the  meaning  of  this  section  u^nless  such  operation 
is  interfered  with  by  unavoidable  accidents,  labor  strikes,  or 
litigation  brought  without  connivance  of  "The  Companies"; 
provided,  however,  that  the  foregoing  provisions  of  this  section 
shall  not  be  construed  to  require  or  authorize  the  removal  of 
curves  or  turnouts  or  connecting  tracks  specifically  authorized 
by  this  ordinance  to  be  construed  and  maintained  for  use  dur- 
ing rush  hours  or  for  emergency  use  in  case  of  fire  or  accident 
or  such  tracks  as  may  be  necessary  for  a.  connection  with 
"The  Companies'  "  property  used  for  street  railway  purposes. 

The  City  shall  have  the  right  by  ordinance  to  require 
"The  Companies"  to  remove  any  tracks  or  portions  thereof,  the 
further  maintenance  of  which  is  at  any  time  no  longer  war- 
ranted by  the  trafl[ic  or  reasonably  required  in  the  operation 
of  the  street  railway  system,  provided  that  "The  Companies" 
shall  not  be  required  to  remove  such  tracks,  but  may  maintain 
or  reconstruct  and  operate  the  same  during  the  life  of  this 
grant  so  long  as  or  whenever  the  City  shall  permit  the  con- 
struction or  operation  of  any  street  railways  upon  the  streets 
or  parts  of  streets  respectively  from  which  such  tracks  have 
been  so  required  to  be  removed;  and  in  every  case  of  removal 
of  tracks  as  aforsaid  the  company  shall  restore  the  street  or 
public  way  to  the  condition  of  the  other  portions  thereof,  all 
at  their  own  cost. 

If  "The  Companies"  shall  fail  within  a  reasonable  time  to 
remove  any  such  tracks  on  order  of  the  Board  of  Public  Works 
the  said  City  may  remove  them,  charging  the  expense  thereof 
to  "The  Companies";  provided,  however,  that  nothing  in  this 
section  'contained  shall  relieve  "The  Companies"  from  their 
obligations  at  all  times  to  render  adequate  service  on  their 
street   railways. 

SERVICE  REGULATIONS. 

Section  26.  "The  Companies"  hereby  agree  to  comply  with 
all  regulations  of  the  service  of  the  said  street  railway  system 
which  may  be  prescribed  from  time  to  time  by  the  City  Council 
of  the  City. 

STYLE  OF  CARS. 

All  passenger  cars  operated  by  "The  Companies"  shall  be 
used  for  the  carriage  of  passengers  only.     All  such  cars  here- 


The  Proposed  Ordinance  with  Notes.  57 

after  built  or  purchased  shall  be  of  the  best  and  most  approved 
style,  finish  and  design  to  be  approved  by  the  Board  of  Public 
Works;  at  least  fifty  (50)  cars  shall  be  acquired  by  and  placed 
in  operation  upon  the  tracks  of  "The  Companies"  in  addition 
to  those  now  in  use  within  one  year  from  the  passage  of  this 
ordinance,  exclusive  of  delays  occasioned  by  strikes  or  other 
delays  beyond  the  control  of  'The  Companies." 

Said  CGmpanies  agree  to  maintain  upon  all  their  ^^^wbgi(\ 
and  to  at  all  times  run  and  operate  upon  their  roads  good  and^ 
convenient  cars  to  accommodate  public  travel,  and  shall  keep 
the  same  clean,  road  ivorthy,  in  good  repair,  thoroughly  venti- 
lated, properly  heated  and  lighted,  and  in  good  and  safe  order 
and  condition,  and  shall  at  all  times  keep  their  roadbed  and 
tracks  in  good  order  and  condition  so  as  to  afford  safe  and  con 
venient  travel  thereon,  and  the  said  cars  shall  at  all  times  he 
equal  iii  pattern,  style,  finish  and  condition  to  cars  in  ordi- 
nary use  on  the  best  managed  and  equipped  lines  of  street 
railway  in  the  United  States,  and  said  cars  and  machinery 
for  operating  the  same  shall  at  all  times  be  provided  with  the 
best  improved  appliances  for  protecting  the  lives  and  persons 
of  passengers  on  said  road  and  of  the  public  traveling  on  and 
across  the  streets  over  which  said  roads  may  be  operated.  All 
cars  hereafter  built  or  purchased  and  placed  in  operation  on 
the  lines  of  "The  Companies"  shall  have  center  aisles.  They 
shall  be  without  running  footboards  along  the  sides,  and  cross 
seats  facing  forward  shall  be  used,  but  longitudinal  seats,  each 
seating  not  more  than  four  passengers,  may  be  used  at  the  ends 
of  the  cars.  All  single  truck  cars  now  in  use  shall  be  provided, 
as  soon  as  reasonably  possible,  with  cross  seats  facing  forward, 
but  longitudinal  seats,  not  seating  more  than  two  passengers, 
may  be  used  at  the  ends  of  the  cars.  (But  this  shall  not  require 
'The  Companies"  to  dispense  with  the  cable  cars  now  being 
operated  on  Twelfth  Street  before  said  Twelfth  Street  Line 
has  been  electrified  as  herein  provided),  and  all  cars  shall  be 
run  at  all  times  and  places  at  a  reasonable  rate  of  speed  under 
the  particular  circumstances,  and  in  no  event  shall  any  street 
car  be  run  or  operated  at  a  greater  rate  of  speed  than  fifteen 
(15)  miles  per  hour  within  that  territory  of  the  City  between 
Troost  Avenue  on  the  East  and  Nineteenth  Street  on  the  south, 
inclusive  of  State  Line  and  the  Missouri  River;  provided,  that 
this  shall  not  apply  to  any  elevated  road  and  underground 
road.  Outside  of  said  City  limits  said  street  cars  shall  not 
be  run  at  any  greater  rate  of  speed  than  twenty  (20)  miles 
per  hour.  Every  train  shall  be  in  charge  and  under  the  control 
of  at  least  two  competent  men,  a  motorman  and  conductor. 


58  The  Proposed  Ordinance  with  Notes. 

SCHEDULES  ON  WHICH  CARS  SHALL  RUN. 

The  cars  shall  be  run  on  such  schedules  as  Kansas  City, 
by  ordinance,  may  from  time  to  time  prescribe,  and  until  such 
time  as  it  may  prescribe  such  schedules,  the  same  shall  be  run 
at  least  as  frequently  as  is  prescribed  by  the  ordinances  of 
Kansas  City,  Missouri,  in  existence  at  this  time,  and  at  all 
times  with  sufficient  frequency  to  accommodate  the  public. 

Owl  cars  shall  he  run  in  accordance  with  the  schedule  and 
regulation  in  what  is  commonly  known  as  the  *'Owl  Car  Ordi- 
nance'* viz.,  Ordinance  No.  17081. 

Until  changed  by  ordinance  of  the  City,  in  addition  to  the 
present  requirements,  cars  shall  be  operated  between  the  hours 
of  6:30  a.  m.  and  8:30  a.  m.  and  5  p.  m  and  7  p.  m.,  Sundays 
excepted,  on  the  following  lines  at  the  following  schedules: 

Rockhill  and  Northeast  lines  at  no  longer  intervals  apart 
than  three  minutes. 

Independence  Avenue  lines  at  no  longer  intervals  apart 
than  two  and  one-half  minutes. 

Twelfth  Street  lines  at  no  longer  intervals  apart  than  two 
and  one-half  minutes. 

Prospect  Avenue  line  at  no  longer  intervals  apart  than 
two  and  one-half  minutes. 

Indiana  Avenue  line  at  no  longer  intervals  apart  than 
three  minutes. 

Brooklyn  Avenue  line  at  no  longer  intervals  apart  than 
three  minutes. 

Woodland,  Vine  ^nd  Holmes  lines  at  no  loner  intervals 
apart  than  three  minutes. 

Roanoke  line  at  no  longer  intervals  *  apart  than  three 
minutes. 

East  Eighth  and  East  Ninth  Street  lines  at  no  longer  inter- 
vals apart  than  three  minutes. 

Troost  Avenue  line  at  no  longer  intervals  apart  than  two 
and  one-half  minutes. 

Eighteenth  Street  and  Main  Street  lines  at  no  longer 
intervals  apart  than  two  minutes. 

Fifteenth  Street  line  at  no  longer  intervals  apart  than 
three  and  one-half  minutes. 

GENERAL  ROUTING. 

It  is  expressly  understood  that  the  City  reserves  the  right 
to  regulate  and  prescribe  the  number  of  hours  in  each  day 
and  night  the  cars  on  said  street  railways  shall  run,  the  speed 
and  frequency  with  which  the  cars  shall  be  run,  and  to  con- 


The  Proposed  Ordinance  with  Notes.  59 

trol  and  regulate  within  the  City  the  matter  of  the  routing  of 
the  cars  on  all  of  the  lines  ''herein  referred  to,"  and  all  en- 
largements of  the  same,  ivhether  made  by  construction,  pur- 
chase, lease  or  otherwise,  it  being  the  agreement  and  inten- 
tion that  the  City  shall  have  the  right  to  control  the  routing 
of  all  street  cars  within  the  limits  of  the  city  as  the  said 
limits  are  noio  established  or  may  hereafter  be  enlarged,  in 
such  manner  as  the  best  interests  of  the  traveling  public  may 
demand.  Any  routing  herein  provided  for  shall  in  no  event 
be  held  irrevocable  or  unchangeable,  but  the  same  shall  always 
be  subject  to  reasonable  alterations  and  reasonable  changes 
by  the  law-making  authorities  of  Kansas  City,  subject,  how- 
ever, to  the  rights,  if  any,  which  abutting  property  owners 
now  have  under  the  franchise  for  said  lines  as  originally  built. 

TENTH  STREET  LOOP.— COMPENSATION  TO  CITY. 
RIGHT  OF  OTHER  COMPANIES  TO  USE. 

Section  27.  It  is  understood  that  the  cars  of  any  street 
railway  company,  or  any  suburban  railway  company,  not  a 
party  to  this  agreement  may  run  over  and  upon  the  tracks 
constituting  the  loop  or  any  portion  thereof  described  as  fol- 
lows :  On  Tenth  Street  from  Main  Street  to  Wyandotte  Street; 
thence  North  on  Wyandotte  Street  to  Ninth  Street;  thence 
East  on  Ninth  Street  to  Main  Street;  thence  South  on  Main 
Street  to  place  of  beginning,  upon  such  terms  and  conditions  as 
the  Common  Council  shall  hereafter  specify  by  reasonable  ordi- 
nance, and  the  right  to  use  said  loop  shall  be  in  addition  to 
the  rights  othertvise  reserved  by  what  is  known  as  the  three 
block  and  loop  clauses,  as  set  forth  in  Sections  26  and  26a  of 
Ordinance  Number  1^188,  approved  April  IJf,  1900,  and  in  Sec- 
tions 6  and  7  of  Ordinance  Number  4^5113,  approved  February 
5,  1889,  said  provisions  being  expressly  continued  in  force.  And 
the  right  to  use  said  loop  shall  be  in  addition  to  the  other  rights 
reserved  to  permit  other  street  railway  companies  to  use  a 
portion  of  the  tracks,  poles,  wires  and'  electrical  currents  on 
Main  Street  under  the  provisions  of  Ordinance  No.  37969,  ap- 
proved October  7,  1907. 

In  the  event  the  street  railivay  companies,  or  any  of  them, 
shall  contest  or  dispute  the  reasonableness  of  any  ordinance 
passed  by  Kansas  City  permitting  other  roads  to  use  their 
tracks,  under  the  provisions  of  this  ordinance,  the  company 
desiring  to  use  such  tracks  shall,  pending  said  dispute  and  con- 
test, have  the  right  to  use  the  tracks  and  poles  and  wires  and 
electrical  currents  of  said  companies,  but  this  section  in  itself 


60  The  Proposed  Ordinance  with  Notes. 

shall  in  no  wise  be  held  to  be  a  grant  from  Kansas  City  to 
any  company  to  use  said  tracks;  but  before  such  company  shall 
^2Lhave  such  right,  it  shall  be  necessary  for  the  law-making 
^ZT authorities  of  Kansas  City,  in  proper  manner,  to  pass  the  nec- 
essary ordinances  therefor;  and  provided,  further,  if  ''The 
Companies"  dispute  the  reasonableness  of  said  rates  fixed  by 
the  Council,  that  before  any  company  shall  have  the  right  to 
use  said  tracks,  poles,  wires  and  currents,  it  shall  execute  to 
"The  Companies"  owning  or  operating  such  tracks  a  bond  in 
form  and  amount  and  with  sureties  approved  by  the  Circuit 
Court  of  Jackson  County,  Missouri,,  or  by  one  of  the  judges 
of  said  Court,  to  pay  the  compensation  due  for  such  use,  and 
to  hold  "The  Companies"  owning  the  tracks  harmless  from 
damages  caused  by  the  new  company. 

"The  Companies"  shall  operate  around  said  loop  a  number 
of  cars  equal  to  the  number  which  were  being  run  upon  the 
West  Ninth  Street  line  just  prior  to  the  building  of  said  loop. 
As  compensation  therefor,  "The  Companies"  shall  pay  to 
Kansas  City  the  sum  of  Twelve  Hundred  Dollars  ($1200.00) 
per  annum,  payable  annually,  on  or  before  the  1st  day  of 
March  of  each  year  for  the  year  ending  December  31st  last 
preceding,  the  amount  so  paid  to  be  treated  as  an  operating 
expense,  and  shall  permit  the  City  to  use  their  tracks  free  and 
shall  furnish  the  necessary  power  free  for  such  street  sprink- 
ling cars  or  apparatus  as  the  City  may  see  fit  to  use  in  sprink- 
ling the  streets  over  which  the  tracks  of  "The  Companies" 
shall  run  within  the  City  limits.  The  City  shall  run  said  cars 
at  its  own  cost  and  at  its  own  risk  and  shall  hold  said  Com- 
panies harmless  from  any  damage  resulting  therefrom. 

RIGHT  OF  THE  CITY  TO  PURCHASE. 

Section  28.  "The  Companies"  by  the  acceptance  of  this 
ordinance,  shall  and  do  grant  to  the  said  City,  and  the  said 
City  hereby  reserves  to  itself  the  right  upon  the  1st  day  of 
June  or  upon  the  1st  day  of  December  of  each  and  every  year 
after  January  1st,  one  thousand  nine  hundred  and  forty-five 
(1945),  upon  giving  at  least  six  (6)  months'  notice  in  writ- 
ing of  its  intention  so  to  do,  to  purchase  and  take  over  the 
entire  street  railway  system  and  properties  of  'The  Companies" 
then  existing. 

PRICE  TO  BE  PAID  BY  THE  CITY. 

In  case  the  City  shall  purchase  and  take  over  the  street 
railway  system  of  "The  Companies"  as  in  this  ordinance  pro- 


The  Proposed  Ordinance  with  Notes.    -  61 

vided,  then  it  shall  pay  for  the  same  the  actual  value  thereof 
as  the  same  may  be  agreed  upon  by  the  City  and  "The  Com- 
panies" at  the  time  of  the  purchase,  and  in  the  event  of  dis- 
agreement, then  for  such  price  as  the  Circuit  Court  of  Jack- 
son County  may  adjudge  to  be  the  just  and  fair  valuation 
thereof  (excluding  franchise  value)  after  a  fair  judicial  exam- 
ination of  the  question  as  in  ordinary  and  usual  procedure  in 
said  Court,  saving  to  both  parties  hereto  the  right  of  appeal 
from  such  finding  and  vesting  said  Circuit  Court  and  Appel- 
late Courts  with  full  authority  to  hear  and  determine  the  same, 
and  authorizing  and  empowering  said  Court  to  enter  such 
judgment  as  will  effectuate  the  purpose  of  this  agreement. 

In  the  event  that  it  shall  be  determined  that  the  City  is 
at  the  time  this  ordinance  is  passed  or  at  the  time  this  ordi- 
nance takes  effect  without  lawful  power  or  authority  to  acquire, 
own  or  operate  street  railways  under  the  provisions  of  this 
ordinance  or  otherwise  in  any  one  or  more  of  the  cities  in  this 
ordinance  referred  to,  and  the  City  of  Kansas  City,  Missouri, 
shall  thereafter  acquire  such  power  or  authority,  thereupon 
and  after  such  acquirement  the  City  shall  have  the  right  to 
purchase,  acquire  and  operate  said  street  railways,  rights  and 
property  under  the  provisions  of  this  ordinance  to  the  same 
extent  and  in  the  same  measure  as  if  said  City  had  full  right 
and  law^ful  authority  so  to  purchase,  acquire  and  operate  said 
street  railways,  rights  and  property  at  the  date  of  the  passage 
of  this  ordinance  and  on  the  date  when  this  ordinance  takes 
effect. 

The  City  shall  have  the  right  to  elect  whether  it  will  take 
the  entire  street  railway  system,  including  the  property  located 
in  Missouri,  as  well  as  the  property  located  in  the  State  of 
Kansas,  or  in  lieu  thereof,  it  may  elect  to  purchase  only  the 
lines  and  property  located  in  the  State  of  Missouri.  Any 
appraisement  shall  only  include  the  lines  and  properties  which 
the  City  so  elects  that  it  shall  purchase,  but  it  is  stipulated 
and  agreed  that  the  Missouri  lines  and  properties  if  purchased 
must  be  taken  as  a  whole,  if  at  all,  and  that  the  Kansas  lines 
and  properties,  if  included,  must  be  taken  as  a  whole,  if  at  all. 

CITY'S  RIGHT  TO  INTERVENE. 

Section  29.  "The  Companies"  by  the  acceptance  of  this 
ordinance  shall  and  do  grant  to  said  City  and  the  said  City 
hereby  reserves  to  itself  the  right  to  intervene  in  any  suit  or 
proceeding  brought  by  any  person,  firm  or  corporation  seeking 
to  enjoin,  restrain  or  in  any  manner  interfere  with  "The  Com- 
panies'* in  the  doing  of  any  work  called  for  by  this  ordinance 


62  The  Proposed  Ordinance  with  Notes. 

or  involving  the  observance  or  performance  of  any  of  the 
agreements  or  conditions  herein  provided  to  be  kept  or  per- 
formed by  "The  Companies"  or  in  any  suit  to  foreclose  or  en- 
force any  lien,  mortgage  or  trust  deed  against  them  and  to 
move  for  a  dissolution  of  such  injunction  or  restraining  order 
in  such  suit  and  take  any  other  proper  steps  to  protect  the 
rights  of  such  city  in  case  it  shall  deem  such  action  necessary 
and  proper  to  protect  the  interests  of  said  City. 

ORDINANCE  BINDING  UPON  SUCCESSORS  AND  ASSIGNS. 

Section  30.  This  ordinance  shall  inure  to  the  benefit  of 
and  be  binding  upon  the  successors  and  assigns  of  "The  Com- 
panies" and  they,  and  each  of  them,  shall  be  bound  by  all  and 
every  one  of  its  provisions  by  "The  Companies"  to  be  kept 
and  performed  precisely  as  if  in  every  case  they  had  re- 
spectively been  named  herein  with  "The  Companies." 

WARRANTY  OF  TITLE. 

*  Section  31.  Whenever  the  City  shall  desire  to  purchase 
and  take  over  the  street  railway  system  and  property  of  "The 
Companies"  as  in  this  ordinance  provided,  and  shall  comply 
with  the  provisions  of  this  ordinance  with  respect  to  making 
such  purchase  and  payment  therefor,  "The  Companies"  shall 
by  good  and  sufficient  written  instruments  to  that  end  transfer 
to  the  City  all  of  its  said  street  railway  system  and  properties 
free  from  all  claims  and  liens  whatsoever,  and  "The  Com- 
panies" shall  warrant  the  title  to  all  of  the  properties  so  trans- 
ferred to  the  City  to  be  free  from  all  claims  and  liens  what- 
soever, and  also  that  there  are  no  outstanding  rights  in  the 
streets  or  parts  of  streets  occupied  by  their  street  railways  in 
any  person  or  corporation  derived  through  or  under  "The 
Companies,"  and  if  at  the  date  of  said  purchase  there  shall 
exist  any  defect  in  or  incumbrance  upon  "The  Companies'  " 
title  to  any  of  the  real  estate  now  owned  by  "The  Companies" 
an  amount  of  the  purchase  price  equal  to  the  value  of  said  real 
estate  (to  be  arrived  at  by  appraisers,  one  of  them  selected 
by  "The  Companies,"  one  by  the  City,  and  the  two  thus  chosen 
to  select  a  third)  the  title  to  which  shall  be  encumbered  or  de- 
fective, the  City  shall  deposit  such  portion  of  the  purchase 
money  for  said  street  railway  properties  until  such  defects  and 
encumbrances  shall  be  cured  or  removed  as  security  to  the  pur- 
chaser for  the  loss  from  such  defects  or  encumbrances. 


The  Proposed  Ordinance  with  Notes.  63 

REPEALING  CLAUSE. 

Section  32.  All  ordinances,  or  parts  of  ordinances,  in  con- 
flict herewith  are,  only  in  so  far  as  they  conflict,  hereby  re- 
pealed, but  all  obligations  of  every  kind  and  character  in  favor  §l-|-l 
of  the  City  or  ''The  Companies"  noiv  existing,  except  in  so 
far  as  they  are  hereby  modified  or  repealed,  shall  continue  in 
full  force  and  effect;  provided,  however,  that  in  repealing  the 
provisions  of  existing  ordinances  fixing  a  percentage  of  the 
gross  earnings  of  "The  Companies"  in  lieu  of  taxes.  Nothing 
herein  shall  be  so  construed  as  limiting  the  power  of  taxation 
of  the  State,  County  and  City,  nor  to  iirevent  the  City  from 
charging  an  annual  license  of  fifty  dollars  per  car  on  the  aver- 
age number  of  cars  operated  by  ''The  Companies,"  which  said 
license  "The  Companies"  agree  to  pay. 

FORFEITURE  FOR  NON-COMPLIANCE. 

Section  33.  "The  Companies"  by  the  acceptance  of  this 
ordinance  expressly  agree  with  said  City  and  obligate  them- 
selves fully  to  comply  with  all  the  terms  and  conditions  of  this 
ordinance  throughout  the  period  of  time  covered  hereby  and  so 
long  as  "The  Companies"  continue  to  operate  any  street  rail- 
ways under  or  by  virtue  of  the  authority  hereof. 

"The  Companies"  further  agree  that  in  the  event  that  they 
shall  make  default  in  the  observance  or  performance  of  any  of 
the  agreements,  or  conditions  herein  required  to  be  kept  and 
performed  by  them,  and  if  any  such  default  shall  continue  for  a 
period  of  three  (3)  months  (exclusive  of  all  times  during  which 
"The  Companies"  may  be  delayed  or  interfered  with  without 
their  connivance  by  unavoidable  accidents,  labor  strikes  or  the 
orders  or  judgments  of  any  court  entered  in  any  suit  brought 
without  their  connivance)  after  written  notice  thereof  to  them 
from  said  City,  then  and  in  each  and  every  such  case  the  said 
City  by  the  judgment  of  a  court  of  competent  jurisdiction  shall 
be  entitled  to  declare  this  grant  and  all  of  the  rights  and  priv- 
ileges of  "The  Companies"  to  maintain  and  operate  street  rail- 
ways in  any  of  the  streets  or  public  ways  of  the  said  City  to  be 
forfeited  and  at  an  end;  provided,  however,  "The  Companies" 
shall  have  ninety  days  to  do  and  perform  the  act  or  acts  caus- 
ing such  forfeiture,  and  if  "The  Companies"  shall  within  such 
time  do  and  perform  such  acts,  such  judgment  shall,  on  mo- 
tion, be  annulled,  set  aside  and  avoided,  and  if  "The  Com- 
panies" within  said  time  shall  not  do  and  perform  such  acts 
then  the  said  judgment  shall  be  final  and  binding.  Should 
"The  Companies"  for  their  corporate  purpose  pledge  or  mort- 


64  The  PROPoeED  Ordinance  with  Notes. 

gSLge  their  railway  property  or  any  of  the  rights  secured  to 
them  by  this  ordinance  for  the  payment  of  their  notes,  bonds 
or  other  evidence  of  indebtedness,  such  right  of  forfeiture  of 
this  grant  by  reason  of  any  violation  by  "The  Companies"  of 
the  provisions  of  this  ordinance  shall  not  be  asserted  or  exist 
against  such  pledgee  or  pledgees,  mortgagee  or  mortgagees,  or 
any  of  them,  and  shall  not  impair  or  affect  the  right  of  such 
pledgee  or  pledgees,  mortgagee  or  mortgagees  to  recover  by 
foreclosure,  or  other  legal  process,  all  the  property  of  "The 
Companies,"  including  the  rights  and  privileges  hereby  granted, 
the  face  value  of  said  notes,  bonds  or  other  evidence  of  in- 
debtedness, to  an  amount,  however,  not  in  excess  of  $3,000,000 
less  than  the  actual  value  of  the  property,  such  value  to  be 
determined  as  provided  for  in  the  purchasing  section  of  this 
ordinance;  and  it  is  hereby  stipulated  that  any  notice  of  de- 
fault by  "The  Companies"  upon  which  a  forfeiture  shall  be 
claimed  shall  also  be  given  by  the  said  City  to  the  trustee  or 
mortgagee  of  record  in  any  trust  deed  or  mortgage  securinjg 
guch  indebtedness.  The  purchaser  on  any  foreclosure  or  other 
sale  shall  acquire  no  other  or  greater  rights  or  privileges  than 
are  hereby  conferred,  and  such  purchaser  shall  hold  said  prop- 
erty so  purchased  at  such  foreclosure  or  other  sale  subject  to 
the  rights  of  purchase  at  any  time  thereafter  as  herein  pro- 
vided by  the  said  City,  and  also  subject  to  the  continuing 
terms,  conditions  and  limitations  of  this  ordinance,  including 
the  forfeiture  provisions  to  the  same  extent  as  if  the  said  pur- 
chaser had  been  the  original  grantee  hereunder  except  that 
such  purchaser  shall  have  no  right  to  execute  or  deliver  any 
mortgage,  trust  deed  or  other  incumbrance  on  said  street  rail- 
ways, rights  and  properties  or  any  part  thereof  without  the 
consent  of  said  City. 

The  City  shall  have  the  right  to  bid  and  become  the  pur- 
chaser at  any  such  foreclosure  or  other  sale. 

If  "The  Companies"  shall  at  any  time  after  the  acceptance 
of  this  ordinance  by  them  fail  to  comply  with  the  provisions 
hereof  with  regard  to  the  maintenance  of  first-class  street  rail- 
way service  over  and  upon  its  said  lines  of  street  railway,  the 
said  City  shall  have  the  right  to  sue  for  and  recover  in  any 
court  of  competent  jurisdiction  the  sum  of  not  less  than  Fifty 
($50.00)  Dollars  and  not  more  than  Five  Hundred  ($500.00) 
Dollars  for  each  and  every  such  failure,  and  each  and  every 
day  that  such  failure  shall  continue  shall  be  taken  and  held 
to  be  a  separate  offense;  but  the  payment  of  such  penalty 
shall  not  in  any  manner  release  the  liabilities  of  such  Com- 


The  Proposed  Ordinance  with  Notes, 


6S 


panics  to  incur  a  forfeiture  of  all  their  rights  and  privilegres 
under  this  ordinance,  as  hereinabove  provided. 

Whenever  "The  Companies"  fail  or  refuse  to  comply  with 
any  of  their  obligations  hereunder,  the  City  shall  have  the  right 
in  addition  to  the  other  rights  and  remedies  expressly  or  by 
law  reserved  to  it  to  do  or  cause  to  be  done  the  things  re- 
quired to  be  done  by  the  street  railway  companies,  and  the  City 
shall  have  the  right  to  collect  from  *'The  Companies"  and  ''The 
Companies"  shall  be  liable  to  the  City  for  all  the  cost  and  ex- 
pense thereof,  including  cost  of  suit.  ''The  Companies"  shall 
deposit  with  the  City  Treasurer  the  sum  of  Fifteen  Hundred 
(1500)  Dollars  for  the  faithful  compliance  with  this  section, 
and  as  often  as  any  portion  of  said  sum  is  used  by  the  Board 
of  Public  Works  in  fulfillment  of  the  obligations  of  "The  Com- 
panies" the  said  Companies  shall  on  notice  from  the  said  Board 
of  Public  Works  deposit  a  corresponding  sum  with  the  City 
Treasurer, 


§^v?/ 


NOTE. 

The  Metropolitan  Street  Railway  Company  in  this  ordinance, 
has  taken  great  pains  to  leave  out  all  the  substantial  penalty 
clauses  and  forfeiture  clauses  incorporated  in  the  Peace  Agree- 
ment and  to  insert  in  lieu  thereof  forfeiture  clauses  that  are 
absolutely  worthless. 

Section  37  of  the  Peace  Agreement  simply  provides  that  if 
the  railway  companies  neglect  to  comply  with  any  of  the  pro- 
visions of  their  ordinance  or  any  lawful  ordinance  of  Kansas 
City  it  shall  forfeit  all  its  rights,  powers  and  franchises  con- 
ferred by  the  ordinance,  and  the  ordinance  be  null  and  void. 
It  is  interesting  to  note  that  this  section  37  is  not  incorporatedj 
in  the  ordinance  submitted  to  our  vote.  It  is  also  provided  inj  ^ 
section  37  of  the  Peace  Agreement  that  in  case  Uiu'  Lumpaiu^j.T'^vJ^ 
ordinance,  the  city  shall  have  the  right  to  take  possession  of 
the  companies'  poperty  until  $250,000  liquidated  damages  are 
collected  by  the  city  for  such  default.  It  Is  interesting  to  note 
that  this  provision  is  also  omitted  from  the  proposed  ordinance. 
In  lieu  of  these  provisions  the  ordinance  submitted  to, our  vote 
has  the  above  forfeiture  clause  in  most  part  copied  from  the 
forfeiture  clause  of  Chicago,  but  all  the  force  of  the  Chicaeo 
forfeiture  pix)visions  is  eliminated  in  the  contract  submitted  to 
us  by  a  provision  which  is  interpolated  and  a  Kansas  City 
invention. 

This  provision  gives  the  company  the  power  and  license  to 
refuse  to  carry  out  any  stipulation  required  under  the  proposed 
ordinance  without  fear  that  its  franchise  shall  be  taken  away; 
for  the  reason  that  even  after  this  default  has  continued  during 
all  the  time  necessary  to  bring  the  matter  to  a  final  conclusion 
in  the  upper  courts  the  company  may  avoid  a  forfeiture  Imposed 
upon  it  for  such  default  by  them  within  90  days  by  then  making 
showing  of  performance. 


66  'I'HE  Proposed  Ordinance  with  Notes. 


The  following  is  a  copy  of  the  forfeiture  clause  of  the  Chi- 
cago ordinance  of  February  11,  1907,  section  32: 

"The  company  further  agrees  that  in  the  event  that  it  shall  make  default 
in  the  observance  or  performance  of  any  of  the  agreements  or  conditions 
herein  required  to  be  kept  and  performed  by  it  (other  than  the  obligations 
stated  in  subdivision  'd'  of  Section  1  of  this  ordinance,  as  to  which  special 
provision  has  been  made  in  Section  25  of  this  ordinance,  which  obligations, 
however,  are  to  be  excepted  only  in  case  the  company  has  fully  complied 
with  the  provisions  of  said  Cection  25),  and  if  any  such  default  shall  continue 
for  a  period  of  three  (3)  months  (exclusive  of  all  times  during  which  the 
company  may  be  delayed  or  interfered  with,  without  its  connivance,  by 
unavoidable  accidents,  labor  strikes  or  the  orders  or  judgments  of  any  court 
entered  in  any  suit  brought  without  its  connivance),  after  written  notice 
thereof  to  it  from  the  said  city,  then  and  in  each  and  every  such  case  the 
said  city,  by  its  City  Council,  shall  be  entitled  to  declare  this  grant  and  all 
of  the  rights  and  privileges  of  the  company  to  maintain  and  operate  street 
railways  in  any  of  the  streets  or  public  ways  of  the  said  city  to  be  forfeited 
and  at  an  end;  provided,  however,  that  should  the  company,  for  its  corporate 
purposes,  pledge  or  mortgage  its  street  railway  property  or  any  of  the  rights 
secured  to  it  by  this  ordinance,  or  any  security  representing  the  said  prop- 
erty or  rights,  for  the  security  of  the  payment  of  its  notes,  bonds,  or  other 
evidences  of  indebtedness  maturing  not  later  than  February  1,  A.  D.  1927, 
the  amount  thereof  not  being  excess  of  the  value  of  all  the  property  and 
rights  of  the  company,  as  defined  in  ection  20  hereof,  such  right  of  forfeiture 
of  this  grant  by  reason  of  any  violation  by  the  company  of  the  provisions 
of  this  ordinance  shall  not  be  asserted  or  exist  against  such  pledgee  or 
pledgees,  mortgagee  or  mortgagees,  or  any  of  them,  and  shall  not  impair  or 
affect  the  right  of  said  pledgee  or  pledgees,  mortgagee  or  mortgagees,  to 
recover  by  foreclosure  or  other  legal  process  against  all  the  property  of  the 
company,  including  the  rights  and  privileges  hereby  granted,  the  face  value 
of  said  notes,  bonds  or  other  evidences  of  indebtedness,  or  any  security 
representing  the  said  property  or  rights  to  an  amount,  however,  not  in  excess 
of  the  sum,  for  which  the  city  would  then  have  the  right,  under  the  terms 
of  this  ordinance,  to  purchase  the  said  street  railway  property  for  municipal 
operation;  and  it  is  hereby  stipulated  that  any  notice  of  default  by  the 
company,  upon  which  a  forfeiture  shall  be  claimed,  shall  also  be  given  by 
the  said  city  to  the  trustee  or  mortgagee  of  record  in  any  trust  deed  or 
mortgage  securing  such  indebtedness.  The  purchaser  at  any  foreclosure  or 
other  sale  shall  acquire  no  other  or  greater  rights  or  privileges  than  are 
hereby  conferred,  and  such  purchaser  shall  hold  said  property,  so  purchased 
at  such  foreclosure  or  other  sale,  subject  to  the  right  of  purchase  at  any 
time  thereafter,  as  herein  provided,  by  the  said  city,  and  also  subject  to  the 
right  of  purchase  by  any  licensee  of  the  said  city,  upon  the  same  terms  as 
the  said  city  might  purchase  and  acquire  said  property,  but  without  payment 
in  either  case  of  the  additional  twenty  per  cent  provided  for  in  Sections  20 
and  22  of  this  ordinance;  and  also  subject  to  the  continuing  terms,  conditions 
and  limitations  of  this  ordinance,  including  the  forefiture  provisions,  to  the 
same  extent  as  if  the  said  purchaser  had  been  the  original  grantee  here- 
under, except  that  such  purchaser  shall  have  no  right  to  execute  or  deliver 
any  mortgage,  trust  deed  or  other  encumbrance  on  said  street  railways, 
rights  and  property  or  any  part  thereof  without  the  consent  of  said  city." 


The  Proposed  Ordinance  with  Notes.  67 

ORDINANCE  TO  BE  SUBMITTED  TO  THE  PEOPLE, 

Section  34.  Not  less  than  thirty  days  after  its  enactment, 
this  ordinance  shall  be  submitted  to  the  qualified  voters  of  the 
City  at  an  election  to  be  held  for  that  purpose,  and  in  no  event 
shall  this  ordinance  take  effect  or  be  valid  until  and  unless  it 
is  ratified  by  a  majority  of  the  qualified  voters  of  the  City 
voting  at  said  election. 

Providing,  that  if  **The  Companies"  shall  not  pay  to  the  City 
Treasurer  said  sum  of  money,  referred  to  in  section  hereof  within 
the  time  herein  provided,  or  if  "The  Companies"  shall  not  file 
their  formal  acceptance  of  this  ordinance  and  of  all  its  terms  and 
conditions,  within  sixty  days  after  said  election,  then  in  either 
or  any  such  event  all  rights  and  privileges  hereby  granted  shall 
be  wholly  null  and  void  and  of  no  effect,  the  acceptance  of  this 
ordinance  by  *The  Companies"  being  hereby  made  a  condition  of 
this  ordinance  taking  effect. 

Passed  Oct.  25th,  1909,  R.  L.  GREGORY,  President,  Upper 
House  of  the  Common  Council. 

Passed  Nov.  1st,  1909,  F.  J.  Shinnick,  Speaker,  Lower 
House  of  the  Common  Council. 

Approved  Nov.  1st,  1909,  Thomas  T.  Crittenden,  Jr., 
Mayor. 

Attest:     M.  A.  Flynn, 
(Seal.)  City  Clerk. 


•Trirrngni 


iN  almost  every  car  is  an 
alluring  placard  prom- 
ising 4-cent  fares.  It  oc- 
curs to  me  that  that  state- 
ment would  look  much 
better  in  the  ordinance 
than  it  does  in  the  cars. — 
From  Edward  L.  Scarritt's 
franchise  address  before  the 
commercial  club. 


Mllo  R.  Maltbie,  Public  Service  Commissioner  of  New 
York,  in  an  article  recently  read  before  the  National  Municipal 
League  entitled,  "A  Rapid  Transit  Policy  for  Greater  New 
York,"  said:  "The  principle  for  which  the  public  service  com- 
mission stands,  means  that  the  city  shall  always  be  in  position 
to  control  transit  development.  Nothing  is  more  vital  to  a 
city  than  adequate  transportation,  and  it  is  no  more  important 
that  a  city  should  control  its  streets  than  that  it  should  control 
the  special  arteries  of  traffic,  its  rapid  transit  lines.  Under 
an  irrevocable  franchise  or  operating  contract  which  gives  a 
company  the  exclusive  right  to  operate  a  line  for  thirty,  forty, 
fifty  or  a  hundred  years,  the  city  loses  complete  control  and 
there  is  no  way  by  which  it  can  be  regained  before  the  ex- 
piration of  the  time  except  at  enormous  expense  and  under 
such  difficulties  as  make  it  impracticable.  The  same  gentle- 
man on  a  "Report  on  Indeterminate  Franchise  of  Public 
Utilities,"  says:  "The  pendulum  has  swung  from  perpetual 
franchises  with  no  restrictions  to  short  term  franchises  with 
every  restriction  it  is  possible  to  devise.  It  is  easier  to  re- 
lease a  captive  than  to  bind  a  fugitive;  and  a  city  which  has 
too  severely  restricted  a  public  service  corporation  can  more 
easily  increase  the  latitude  allowed  than  can  the  city  which 
has  bargained  away  its  power  to  control,  recover  such  power." 


The  Outlook  of  December  4,  1909,  makes  the  following  objections  to 
this  ordiancc  proposed  to  us  for  our  vote  on  December  16th: 

"Cri'ics  of  this  ordinance  point  out  that  the  city  is  going  into  the 
trade  blindfolded;  that  it  h^^s  no  way  of  knowing  what  the  property  is  worth, 
and  what  a  reasonable  rate  of  fare  would  be;  that  six  tickets  for  a  quarter, 
while  an  advantage  to  the  city,  is  a  good  business  proposition  for  the  com- 
pany— though  it  might  evade  the  concession  later  if  it  cared  lo,  as  was 
done  in  Philadelphia — and  that  It  is  to  have  the  immensely  valuable  right 
to  the  use  of  the  streets  for  forty-two  years  virtually  free;  that  the  fran- 
chise fails  to  regulate  the  amount  of  indebtedness  'hat  the  company  may 
assume,  so  that  after  1925,  '.he  right  to  regulate  fares  might  prove  useless, 
since  the  courts  might  hold— as  they  have  held — that  a  reduced  fare  would 
be  insufficient  to  pay  returns  on  heavily  watered  securities;  and  that  the 
franchi&e  makes  municipal  ownership  impossible  until  1945.  It  is  urged 
further  that  other  citiee,  such  as  Columbus  and  Cleveland,  have  obtained 
much  better  terms  in  the  way  of  fares,  and  that  in  these  days  of  competition 
between  cities  for  industries,  no  city  can-  afford  to  hamper  hereelf  and  tie 
its  hands  to  its  street'tniilway  contract.!' 


This  following  ordinance,  called  the  "Peace  Agree- 
ment/' constitutes  the  contract  under  which  the  Street 
Railway  Companies  are  now  operating  in  the  streets  of 
our  city. — It  does  not  expire  until  1925. 


PEACE  AGREEMENT  OF   1903. 

Be  it  Ordained  by  the  Common  Council  of  Kansas  City, 
Missouri: 

CONTRACT  FOR  CHANGES  IN  TRACKS  AND  EQUIPMENT. 

Section  1.  The  Metropolitan  Street  Railway  Company,  the 
Central  Electric  Railway  Company  and  Kansas  City  Elevated 
Railway  Company,  now  owning  and  operating  all  lines  of  street 
railway  in  Kansas  City,  Missouri,  shall  make  the  changes  in 
their  tracks,  equipment  and  lines,  which  they  now  and  may 
hereafter  operate  in  the  city,  as  hereinafter  specified,  including 
the  conversion  of  the  lines  operated  by  cable  into  electric  lines, 
as  hereinafter  set  forth.  The  terms  and  conditions  upon  which 
such  work  shall  be  done  are  herein  expressed,  which  things 
the  companies  must  and  do  consent  to,  and  by  an  acceptance 
hereof  they  contract  with  the  city,  which  contract  is  embodied 
in  this  ordinance,  and  when  accepted  by  said  companies  shall 
become  a  fixed  and  binding  contract  upon  the  City  and  all  said 
railway  companies,  their  successors  and  assigns,  the  parties 
intending  by  this  contract  to  cover  all  the  lines  of  street  rail- 
way now  in  Kansas  City,  Missouri,  as  its  limits  now  are  or 
may  be  hereafter  extended,  as  well  as  those  lines  of  road  which 
may  be  constructed  pursuant  to  this  ordinance. 

EIGHT  PER  CENT  CLAUSE. 

Section  2.  On  and  from  the  first  day  of  June,  1902, 
there  shall,  so  long  as  said  companies  operate  their  railways 
under  existing  franchises,  be  paid  annually  to  the  City  by  the 
Metropolitan  Street  Railway  Company,  the  Kansas  City  Ele- 
vated Railway  Company  and  the  Central  Electric  Railway -Cdtti- 
pany,  their  successors  and  assigns,  a  sum  equaling  eight  per 
^ent  (B  per  cent)  of  the  gross  car  and  track  ei^mings  of  all 


The  Peace  Agreement.  71 

their  lines  in  Kansas  City,  Missouri,  as  they  now  exist,  or  as 
the  system  or  systems  may  be  extended  or  enlarged  pursuant 
to  the  terms  of  this  contract,  including  the  Swope  Park  line 
and  the  electric  line  to  Independence,  Missouri,  under  the  fol- 
lowing terms  and  conditions: 

ALL   CITY   LINES   AND   SUBURBAN    LINES    INCLUDED  — 
'       CARRYING  PARCELS. 

(a)  The  present  Roanoke  extension,  the  extension  of  the 
Westport  line  from  Westport  Avenue  south  and  east  to  Forty- 
seventh  Street,  the  Twenty-seventh,  Thirty-first  and  Indiana 
Avenue  lines  and  the  extension  of  the  Brooklyn  Avenue  line 
from  Twenty-seventh  to  Thirty-first  Streets,  as  they  are  now 
or  may  be  constructed,  altered  or  extended  and  in  operation, 
are  included  in  Section  two  (2)  of  this  ordinance;  and  there 
shall  be  included  in  the  earnings  of  the  said  companies  as  if 
earned  in-  Kansas  City,  Missouri,  the  entire  system  of  the  Met- 
ropolitan Street  Railway  Company  between  Kansas  City  and 
Independence,  Missouri,  including  branches  and  extensions 
thereof,  and  the  Swope  Park  line  and  the  other  extensions  men- 
tioned herein. 

Provided,  further,  that  there  shall  be  included  in  said 
gross  earnings  one  full  fare  for  each  passenger  taken  from 
or  to  suburban  lines  within  the  State  of  Missouri,  less  such 
sum  as  may  be  paid  to  suburban  lines,  not  exceeding  one  cent 
per  passenger  one  way,  as  set  forth  in  Section  15;  and  pro- 
vided, further,  that  there  shall  be  included  in  the  gross  earn- 
ings such  proportion  of  the  charges  for  carrying  parcels  or 
other  things  referred  to  in  this  contract  to  or  from  points  out- 
side of  the  City  over  the  lines  within  the  City  as  the  distance 
carried  within  the  City  bears  to  the  whole  distance  carried; 
and  there  shall  be  included  all  collections  for  track  earnings  on 
the  tracks  now  in  Jackson  County,  Missouri,  or  tracks  to  be 
constructed  pursuant  to  the  provisions  hereof. 

Upon  all  suburban  lines  operated  partly  within  the  State 
of  Missouri  and  partly  within  some  other  state,  there  shall  be 
included  all  fares  or  collections  of  the  character  aforesaid  orig- 
inating in  Kansas  City,  Missouri. 

TAXES  TO  BE  PAID.— RESIDUE  PAID  TO  CITY 

(b)  Out  of  said  sum  so  equaling  eight  per  cent  (8  per 
cent),  there  shall  each  year  be  first  paid  by  said  Companies 
all  the  itate,  county,  city,  school  and  municipal  taxes  of  every 
Jcind  or  character  upon  thair  property  in  Missouri  of  the  char* 


72  The  Peace  Agreement. 

acter  now  assessable  by  the  State  Board  of  Equalization,  which 
is  actually  used  by  such  Companies  in  operating  the  lines  from 
which  the  gross  earnings  shall  be  received,  upon  which  the 
eight  per  cent  (8  per  cent)  shall  be  computed  as  aforesaid,  and 
all  license  and  occupation  taxes,  and  taxes  upon  earnings,  if 
any,  assessed  and  levied  by  the  State  or  City  upon  the  prop- 
erty last  aforesaid  in  lieu  of  or  in  addition  to  taxes  levied  as 
at  present  and  all  license  fees  exacted  by  the  City,  excepting 
taxes  levied  upon  real  estate,  personal  or  mixed  property  not 
assessable  as  aforsaid  and  legal  special  taxes  and  assessments 
for  public  improvements  and  for  parks  and  boulevards  and 
the  maintenance  thereof;  but  this  exception  shall  not  include 
bonds,  stocks  of  or  debts  due  from  any  of  the  Companies  or 
lines  of  any  of  said  Companies  now  owned  or  hereafter  con- 
structed and  covered  by  this  contract.  After  making  such  de- 
ductions the  balance  of  such  sum  so  equaling  said  eight  per 
cent  (8  per  cent)  shall  be  paid  to  the  City. 

PERCENTAGE  OF  EARNINGS  UNDER  OTHER  ORDI- 
NANCES, INCLUDED  IN  8  PER  CENT. 

(c)  The  sum  of  eight  per  cent  (8  per  cent),  so  paid  as 
aforesaid,  shall  also  be  in  full  of  any  claim  of  the  City  for  per- 
centage of  earnings  required  to  be  paid  under  other  ordinances 
heretofore  passed. 

SWORN  REPORT  BY  COMPANIES  TO  CITY 

COMPTROLLER. 
—RIGHT  OF  CITY  TO  INSPECT  BOOKS,  ETC. 

(d)  Said  Companies  shall  once  each  week  report  to  the 
City  Comptroller  the  amount  of  their  daily  gross  earnings  for 
the  preceding  week.  Said  report  shall  be  sworn  to  as  correct 
by  the  auditor  or  treasurer  of  said  Companies,  and  the  right  is 
hereby  given  to  the  City  at  any  time,  by  its  officers  and  agents, 
to  examine  the  books,  trip  sheets,  vouchers  and  papers  of  said 
Companies  so  far  as  to  enable  said  City  to  determine  the  gross 
earnings  of  said  Companies. 

DATE  OF  PAYMENT  OF  8  PER  CENT.— GUARANTY  OF 
AMOUNT  OF  SAME. 

(e)  On  the  first  day  of  June,  1903,  the  total  of  the  said 
eight  per  cent  (8  per  cent)  for  the  twelve  months  preceding 
shall  be  ascertained  and  there  shall  be  deducted  therefrom 
seven-twelfths   C7-12)   of  the  amount  of  taxes  and  charges  of 

charaetiei'  gboy^  4^;ifcl  accruing  agaifi&t  wd  Companies, 


The  Peace  Agreement.  73 

during  the  twelve  months  ending  the  31st  day  of  December, 
1902,  and  the  difference  between  the  said  seven-twelfths  (7-12) 
of  said  taxes  so  accruing  during  said  period,  and  the  total  of 
said  eight  per  cent  (8  per  cent),  shall  be  paid  to  the  City  on 
the  first  day  of  June,  1903,  and  thereafter,  on  the  first  day  of 
June  of  each  year,  the  total  of  said  eight  per  cent  (8  per  cent) 
for  the  preceding  twelve  months  shall  be  ascertained,  and  there 
shall  be  deducted  therefrom  all  the  taxes  and  charges  of  the 
character  above  mentioned  to  be  deducted  accruing  during  the 
twelve  months  ending  the  31st  day  of  December,  last  preced- 
incr;  provided,  however,  that  the  amount  of  sa^d  eight  per  cent 
(8  per  cent)  for  the  year  ending  June  1st,  1903,  shall  not  be 
less  than  two  hundred  and  twenty-four  thousand  dollars  ($224,- 
000.00),  and  thereafter  shall  not  be  less  than  two  hundred  and 
thirty-four  thousand  dollars  ($234,000.00)  for  any  one  year, 
and  if  less  the  said  Companies  shall  pay  the  difference.  The 
said  eight  per  cent  shall  be  ascertained  each  year  set)aratelv. 
so  that  if  in  any  one  year  it  exceeds  the  sum  of  $234,000.00 
the  Company  shall  not  have  any  credit  for  the  excess  on  any 
other  year's  earnings. 

Nothing  in  this  ordinance  shall  prevent  or  interfere  with 
the  collection  by  the  City  of  any  and  all  general  taxes  in  its 
favor,  whether  greater  or  less  than  eight  per  cent,  no  matter 
how  they  may  be  from  time  to  time  assessed,  nor  shall  it  pre- 
vent or  interfere  with  the  collection  of  any  and  all  special 
taxes  or  assessments  for  public  improvements,  but  the  City 
shall  not  collect  percentages,  license  fees  or  occupation  or  earn- 
ing charges  so  as  to  make  the  total  to  be  paid  by  the  Com- 
panies as  aforesaid  more  than  said  eight  per  cent. 

Should  the  residue  of  the  eight  per  cent  (8  per  cent) ,  after 
dednctino-  fhe  taxes  aforesaid,  be  less  than  a  sum  enual  to  fift>^ 
dollars  ^$^0)  r>er  car  per  yea"r  on  the  average  nnmbe^  of  ca^s 
ODerated  by  the  Companies,  then  in  that  event  the  City  shall 
have  the  rierht  to  levy  and  collect  from  the  Companies,  as  a 
license  on  ca^s,  an  amount  sufficient  to  make  said  residue  equal 
to  a  license  fee  of  $50  per  car  per  annum  on  the  average  num- 
ber of  cars  operated  by  the  Companies. 

ONE  COMPANY  OPERATING  LINES  OF  OTHER  TO  RETAIN 
8  PER  CENT  OF  EARNINGS  AND  PAY  SAME  TO  CITY. 

(f )  And  in  the  event  that  one  of  said  Companies  does  or 
shall  manage,  control  or  operate  any  line  or  lines  of  said  road 
belonging  to  another  company,  the  company  so  operating  said 
VQa4  ^Wl  retain  eight  per  cent  (8  per  eent)  of  the  gross  earn- 


74  The  Peace  Agreement. 

ings  of  said  line  or  lines  of  road  and  pay  the  same  to  the  City 
as  above  stated,  but  this  provision  shall  not  operate  to  release 
any  of  the  corporations  herein  named  from  their  primary  lia- 
bility to  pay  said -eight  per  cent  (8  per  cent)  as  to  their  re- 
spective lines  as  hereinbefore  specified. 

CONSENTS  OF  PROPERTY  OWNERS. 

Section  3.  Whenever  extensions  of  roads  are  hereinafter 
provided  for,  before  any  such  extension  is  made,  the  necessary 
consents  of  the  property  owners  along  the  proposed  extensions 
shall  be  obtained,  the  right  being  reserved  to  any  citizen  to 
secure  said  consents,  if  the  Company  does  not  obtain  them. 
The  City  hereby  grants  the  right  for  such  extensions  to  take 
effect  upon  the  necessary  legal  consents  of  the  property  own- 
ers, and  if  it  is  by  the  Company  or  the  City  deemed  necessary 
this  grant  shall  be  re-passed.  The  right  to  make  such  extensions 
shall  cease  if  the  same  are  not  made  within  the  times  herein- 
after specified  for  their  completion. 

EXTENSIONS  AND  ELECTRIFICATIONS.— DATE  OF 
COMPLETION. 

Section  4.  Extensions  and  electrifications  of  lines  shall 
be  made  by  the  Companies  owning  them  as  follows:  (a)  The 
Troost  Avenue  line  shall  be  extended  to  Fortieth  Street  by  the 
first  day  of  December,  1902,  and  is  to  be  operated  as  an  elec- 
tric road  throughout  its  entire  length  by  that  date,  and  it  is  to 
be  further  extended  as  an  electric  road  and  in  operation  as 
such,  from  Fortieth  to  approximately  Forty-seventh  or  Forty- 
eighth  Street,  by  the  first  day  of  December,  1903.  Provided, 
however,  the  cars  of  the  Troost  Avenue  line,  after  the  elec- 
trification of  that  line,  shall  be  brought  to  the  business  center 
of  the  city  via  the  Tenth  Street  line  until  the  Eighth  Street 
line  shall  be  electrified  as  herein  provided. 

NINTH  STREET  LINE. 

(b)  The  Ninth  Street  line  shall  be  electrified  and  in  op- 
eration as  an  electric  road  from  Woodland  Avenue  each  by  the 
first  day  of  December,  1903,  but  the  Company  shall  have  the 
right  to  lay  a  temporary  line  on  Woodland  Avenue  from  Ninth 
Street  to  Tenth  Street,  and  at  that  point  to  connect  with  the 
Tenth  Street  line,  so  that  cars  from  said  Ninth  Street  line  shall 
be -brought  to  the  business  part  of  the  Qity  ov^r  the  Tenth 
§ti?eet  line,  temporarily,: 


The  Peace  Agreement.  75 

EIGHTH  STREET  LINE. 

(c)  The  Eighth  Street  line  from  Woodland  Avenue  to 
Grand  Avenue  shall  be  electrified  and  in  operation  as  an  elec- 
tric road  so  that  the  cars  of  said  Ninth  Street  line  may  run 
over  it,  as  soon  as  the  machinery  and  appliances  can  reasonably 
be  obtained,  and  in  no  event  later  than  the  first  day  of  Decem- 
ber, 1903.  As  soon  as  the  Eighth  Street  line  is  electrified 
said  temporary  line  on  Woodland  Avenue  from  Ninth  to  Tenth 
shall  be  taken  up  and  the  street  restored  to  its  original  con- 
dition at  the  expense  of  the  Company,  unless  the  right  is 
granted  at  that  time  for  a  permanent  track. 

INDEPENDENCE  AVENUE  LINE. 

(d)  The  Independence  Avenue  line,  i.  e.,  the  line  on 
Woodland  Avenue  north  from  Eighth  Street  to  Independence 
Avenue,  thence  east,  shall  be  electrified  and  in  operation  as  an 
electric  road  by  the  first  day  of  December,  1903,  said  line  to 
be  extended  by  the  last  said  date  as  far  as  Hardesty  Avenue. 
On  Independence  Avenue  from  Woodland  Avenue  to  Hardesty 
Avenue  the  poles  shall  be,  if  required  by  the  Park  Board, 
placed  between  the  tracks,  said  poles  to  be  ornamental  in  char- 
acter and  satisfactory  to  the  Park  Board,  and  the  right  shall 
be  given  to  the  City  to  place  lights  upon  said  line  of  poles  for 
the  purpose  of  lighting  said  street  and  boulevard. 

(e-a)  On  or  before  December  first,  1904,  the  Metropoli- 
tan Street  Railway  Company  shall  electrify  the  Holmes  Street 
line  from  a  southern  terminus  at  Thirty-third  (33rd)  Street 
to  Twenty-second  (22nd)  Street,  at  which  point  it  shall  aban- 
don the  rest  of  its  line  of  road  on  Holmes  Street  (viz.,  from 
Twenty-second  Street  to  Fifteenth  Street),  and  shall  construct 
a  line  of  double  track  electric  road  on  Twenty-second  (22nd) 
Street  to  Charlotte  Street;  and  thence  on  Charlotte  Street  to 
Nineteenth  (19th)  Street;  and  a  line  of  single  track  road  from 
Nineteenth  (19th)  Street  to  Eighteenth  (18th)  Street  on  Char- 
lotte Street,  so  as  to  connect  the  present  Holmes  Street  line 
with  the  present  Eighteenth  and  Nineteenth  (18th  and  19th) 
Street  lines,  viz.,  that  portion  of  Charlotte  Street  above  de- 
scribed. 

The  cars  of  said  Holmes  Street  line  shall  be  run  north  of 
Thirteenth  (13th)  Street,  as  provided  in  Subdivision  "R"  of 
Section  four  (4)  of  this  Ordinance. 

Wlien  said  Company  shall  have  constructed  its  said  line 
on  Charlotte  Street,  it  shall,  within  six  (6)  months,  remove  its 
tracks,  poles,  wires,  cables,  conduits  and  other  property  from 


76  The  Peace  Agreement. 

the  portion  of  Holmes  Street  between  Twenty-second  (22nd) 
Street  and  Fifteenth  (15th)  Street,  and  shall  restore  the  por- 
tion of  said  street  disturbed  and  the  paving  thereof  to  a  con- 
dition satisfactory  to  the  City  Engineer,  failing  in  which  the 
City  may  make  such  removal  of  tracks  and  other  properties 
and  restoration  of  the  street  at  the  cost  and  expense  of  the 
Street  Railway  Company. 

When  said  Company  shall  have  constructed  its  line  on 
Charlotte  Street,  all  of  its  right  to  that  portion  of  Holmes 
Street  between  Twenty-second  (22nd)  Street  and  Fifteenth 
(15th)  Street  shall  cease  and  determine.  The  right  to  occupy 
the  portion  of  Twenty-second  (22nd)  Street  and  Charlotte 
Street  above  referred  to  shall  exist  for  such  time  as  said  Com- 
pany has  the  right  to  occupy  that  portion  of  Holmes  Street  be- 
tween Twenty-second  (22nd)  Street  and  Thirty-first  (31st) 
Street. 

CHARLOTTE  STREET  VIADUCT. 

(e-b)  Said  Company  shall,  prior  to  December  fourth 
(4th),  1904,  construct,  erect  and  maintain,  without  cost  or  ex- 
pense or  damage  to  the  City,  a  viaduct  and  the  necessary  ap- 
proaches thereto,  on  Charlotte  Street,  the  full  width  of  said 
street,  over  the  railroad  tracks  on  Twentieth  (20th)  Street. 
Said  viaduct  shall  be  built  in  accordance  with  plans  and  speci- 
fications satisfactory  to  and  approved  by  the  City  Engineer  of 
Kansas  City,  Missouri,  and  the  work  of  construction  shall  be 
subject  to  his  inspection  and  approval. 

If  the  Kansas  City  Belt  Railway  Company,  the  tracks  of 
which  are  to  be  crossed  by  said  viaduct,  shall  fail,  neglect  or 
refuse  to  arrange  with  said  Street  Railway  Company  to  pay 
its  fair  share  of  the  cost  of  said  viaduct  and  approaches,  and 
of  the  maintenance  thereof,  and  the  damages,  if  any,  caused 
by  the  erection  thereof,  then  the  Street  Railway  Company  shall 
have  the  right,  within  sixty  (60)  days  from  the  date  this  or- 
dinance becomes  a  law,  to  give  notice  to  Kansas  City  of  said 
refusal;  and,  within  a  reasonable  time  thereafter,  the  City 
shall  pass  the  necessary  reasonable  ordinances  requested  by  said 
Street  Railway  Company  to  compel  said  Railway  Company  to 
co-operate  in  the  construction  of  said  viaduct  and  approaches, 
and  to  pay  two-thirds  (2-3)  of  the  expenses  thereof,  including 
two-thirds  (2-3)  of  the  expense  of  maintenance.  And  the 
Street  Railway  Company  sh air  have  the  right  to  bring  and 
prosecute,  in  the  name  of  the  City,  such  proceedings  as  are 
l^eoe^^ry  to  compel  aaid  Iteilway  Company  to  pay  its  sharf 


The  Peace  Agreement.  77 

of  the  expenses  aforesaid,  and  to  do  its  legal  duty  in  the  prem- 
ises. But  said  proceeding  or  proceedings  shall  be  conducted 
without  cost  or  expense  to  the  City;  .and  said  Street  Railway 
Company  shall  hold  the  City  harmless  by  reason  of  any  such 
cost,  damage  or  expense.  But  the  failure  of  said  Railway 
Company  to  join  in  the  construction  and  maintenance  of  said 
viaduct,  as  above  provided,  shall  not  relieve  the  Street  Rail- 
way Company  from  its  duty  to  cause  the  same  to  be  constructed 
by  December  fourth  (4th),  1904,  and  to  thereafter  maintain 
the  same,  so  long  as  said  Street  Railway  Company's  right  to 
occupy  the  portion  of  Holmes  Street  between  Thirty-first  (31st) 
Street  and  Twenty-second  (22nd)  Street  and  the  portion  of 
Charlotte  Street  and  Twenty-second  Street  above  described 
shall  continue  to  exist. 

Said  viaduct  and  approaches  shall,  as  soon  as  erected  and 
completed,  become  the  property  of  Kansas  City,  subject  to  the 
right  of  occupancy  for  its  tracks  by  said  Street  Railway  Com- 
pany, but  said  Street  Railway  Company  shall  maintain  the 
same  as  aforesaid,  and  shall  hold  Kansas  City  harmless  from 
any  damages  which  may  arise  by  reason  of  the  construction  or 
existence  of  said  viaduct. 

SOUTH  BROADWAY  LINE. 

(f )  The  South  Broadway  line  shall  be  extended  south  to 
the  intersection  of  Broadway  with  Westport  Avenue  by  the 
first  day  of  December,  1902,  and  operated  as  an  electric  road; 
provided,  that  if  Broadway  is  not  opened  to  Westport  Avenue 
in  time  to  make  said  extension,  then  in  that  case  the  Company 
shall  have  a  reasonable  extension  of  time,  and  the  Company 
shall  also  extend  and  operate  as  an  electric  road  said  line  from 
Westport  Avenue  in  a  southerly,  westerly  or  southwesterly  di- 
rection, a  distance  of  one-half  mile,  within  one  year  from  De- 
cember first,   1902. 

VINE  STREET  LINE. 

(g)  The  Vine  Street  line  shall  be  extended  and  operated 
as  an  electric  road  from  the  present  terminus  south  to  about 
Forty-fourth  street  by  the  first  day  of  December,  1903. 

WALNUT  AND  FIFTEENTH  STREET  LINES. 

(h)  The  present  Walnut  Street  and  Fifteenth  Street  lines 
shall  be  electrified  by  the  first  day  of  December,  1903. 


78  The  Peace  Agreement. 

EIGHTH  STREET  TUNNEL.— LOWER  GRADE  OF.— 

DAMAGES. 

(i)  The  Company  shall  have  the  right  to  lower  the  pres- 
ent grade  of  the  Eighth  Street  tunnel  and  to  make  a  practicable 
connection  therewith  by  cutting  and  tunneling  under  Eighth 
Street  to  connect  with  it ;  provided,^  that  the  new  portion  of 
the  tunnel  so  constructed  shall,  from  the  point  where  it  can  be 
reasonably  done,  be  covered  over  so  as  to  leave  that  portion 
of  Eighth  Street  at  its  present  grade.  The  City  shall  take  the 
necessary  steps  to  widen  Eighth  Street  from  Broadway  to  the 
east  line  of  the  alley  between  Washington  and  Bank  Streets 
not  less  than  22  feet  on  each  side,  and  the  Company  shall  pay 
all  damages  in  whatsoever  form  assessed  in  said  widening  pro- 
ceedings, as  well  as  all  other  legal  damages  of  whatsoever  na-. 
ture  caused  by  the  doing  of  said  work,  and  shall  hold  and  save 
the  city  harmless  from  all  liability,  damages  and  costs  arising 
from  said  work  and  plan  of  said  work,  the  purpose  being  to 
provide  a  roadway  on  each  side  of  the  portion  of  the  tunnel 
where  it  is  an  open  cut  in  the  street.  An  underground  station 
shall  be  placed  in  the  tunnel  at  Eighth  and  Washington  Streets. 
All  the  work  shall  be  done  to  the  satisfaction  of  the  City  En- 
gineer. The  Company  shall  place  the  east  portal  of  the  tunnel 
as  extended  approximately  five  feet  east  of  the  east  line  of  the 
alley  between  Washington  Street  and  Bank  Streets  and  shall 
roof  over  the  present  east  entrance  of  the  tunnel  and  make  a 
workmanlike  connection  to  the  new  extension  of  the  tunnel. 
The  present  street  after  the  construction  of  the  aforesaid  work 
shall  be  paved  and  restored  to  its  present  condition. 

ABANDONMENT  OF  39TH  STREET  LINE  FROM  BROAD- 
WAY TO  SUMMIT  STREETS.— RESTORATION 
OF  STREET. 

(j)  On  or  before  the  first  day  of  September,  1902,  the 
Metropolitan  Street  Railway  Company  shall  abandon  Thirty- 
ninth  Street  from  Broadway  to  Summit  Street,  and  shall  re- 
move therefrom  its  tracks,  poles  and  wires  and  shall  restore 
said  street  to  a  condition  satisfactory  to  the  City  Engineer. 

And  on  or  before  the  first  day  of  December,  1902,  the  Met- 
ropolitan Street  Railway  Company  shall  construct  a  double 
line  of  track  from  the  end  of  the  present  double  line  on  Sum- 
mit Street  between  Randolph  Street  and  Thirty-eighth  Street; 
thence  across  Thirty-eighth  street  to  its  private  right  of  way 
between  Thirty-eighth  Street  and  Thirty-ninth  Street.  It  shall 
promptly  cause  that  portion  of  its  tracks  lying  upon  Summit 


The  Peace  Agreement.  79 

Street  and  Thirty-eighth  Street  to  be  paved  in  accordance  with 
the  general  provisions  of  this  ordinance. 

If  at  any  time  hereafter  the  City  desires  said  private  right 
of  way  lying  between  Thirty-eighth  Street  and  Thirty-ninth 
Street,  or  any  part  thereof,  for  use  as  a  street,  the  Company 
agrees  to  waive  all  claims  for  damages  by  reason  of  the  taking 
of  the  same,  and  when  so  taken  or  otherwise  acquired  from 
the  Company,  the  general  provisions  of  this  contract,  as  to 
paving  and  all  other  matters,  shall  apply. 

WALNUT  STREET  FROM  13TH  STREET  TO  19TH  STREET. 
—CARS  TO  BE  OPERATED  THEREON. 

(k)  On  or  before  the  first  day  of  December,  1904,  the 
Metropolitan  Street  Railway  Company  shall  construct  and 
operate  a  double  track  railway  on  Walnut  Street  from  Thir- 
teenth Street  to  Nineteenth  Street. 

DISMISSAL  OF  MANDAMUS  SUIT  IN  RE  WALNUT  STREET. 

The  pending  mandamus  proceedings  brought  by  the  Met- 
ropolitan Street  Railway  Company  against  Thomas  J.  Pender- 
gast.  Superintendent  of  Streets,  to  compel  him  to  issue  permits 
for  the  construction  of  tracks  on  Walnut  Street,  shall  be  dis- 
missed by  the  Company  at  its  costs. 

TRACKS  ON  SIXTH  STREET  FROM  GRAND  AVENUE  TO 
WALNUT  STREET. 

(1)  The  Metropolitan  Street  Railway  Company  shall,  on 
or  before  the  first  day  of  December,  1903,  construct  and  oper- 
ate a  line  of  double  track  on  Sixth  Street  from  Grand  Avenue 
to  Walnut  Street. 

TRACK   ON   THIRD   STREET   FROM   MAIN   TO   WALNUT. 

(m)  The  Metropolitan  Street  Railway  Company  shall, 
on  or  before  the  first  day  of  December,  1903,  construct  and 
operate  a  line  of  single  track  on  Third  Street  from  Main  Street 
to  Walnut  Street  and  an  additional  track  on  Third  Street  from 
Walnut  Street  to  Grand  Avenue. 

RIGHT    OF    COMPANY    TO    LAY    WATER    PIPES    FROM 
POWER  HOUSE  TO  MISSOURI  RIVER.— CONDITIONS. 

The  said  Company  is  also  granted  the  right  to  lay  neces- 
sary water  pipes,  not  exceeding  four  in  number,  from  its  pro- 
posed new  power  house  at  First  Street  and  Grand  Avenue  to 


80  The  Peace  Agreement. 

the  Missouri  River,  providing  that  ordinary  permits  shall  be 
first  obtained  and  that  the  work  shall  be  done  to  the  satisfac- 
tion of  the  City  Engineer,  and  that  the  pavement  shall  be  re- 
stored to  as  good  condition  as  that  in  which  it  was  found  at 
the  time  said  pipes  were  laid. 

EXTENSION  OF  18TH  STREET  LINE  TO  24TH  AND 

JACKSON. 

(n)  The  Eighteenth  Street  line  shall  be  extended  and 
operated  east  from  Cleveland  Avenue  with  double  track  to 
Jackson  Avenue,  thence  south  on  Jackson  Avenue  to  Twenty- 
fourth  Street,  by  the  first  day  of  December,  1903,  and  a 
double  track  shall  be  built  on  Jackson  Avenue  from  Twelfth 
Street  to  Eighteenth  Street  and  on  Hardesty  Avenue  from 
Ninth  Street  to  St.  John  Ayenue,  and  in  operation  by  the  first 
day  of  December,  1904. 

ABANDONMENT  OF  TRACKS  ON  CLEVELAND  AVENUE 
FROM  12TH  TO  15TH  STREETS  AFTER  ELECTRIFICA- 
TION  AND  EXTENSION  OF  12TH  STREET  LINE  TO 
JACKSON  AVENUE. 

When  the  Twelfth  Street  line  is  electrified  it  shall  be  ex- 
tended to  Jackson  Avenue,  at  which  time  the  Company  shall 
abandon  the  operation  of  its  existing  tracks  on  Cleveland  Ave- 
nue from  Twelfth  Street  to  Fifteenth  Street,  and  shall  remove 
the  same,  together  with  poles  and  wires,  and  restore  the  street 
to  a  condition  satisfactory  to  the  City  Engineer.  Provided,  that 
if  the  work  of  constructing  said  road  upon  Eighteenth  Street 
is  delayed  by  reason  of  said  street  not  having  been  graded 
to  the  established  grade,  then  the  time  of  such  delay  shall  be 
allowed  beyond  the  period  named  herein  for  the  completion  of 
said  road. 

(o)  Within  six  (6)  months  after  Chestnut  Street  shall 
be  opened  and  grades  from  Independence  Avenue  and  Fif- 
teenth (15th)  Street,  the  Prospect  Avenue  line  shall  be  ex- 
tended and  operated  as  a  double  track  railway  from  present 
northerly  terminus  of  said  line  at  Fifteenth  (15th)  Street, 
thence  east  upon  and  along  Fifteenth  (15th)  Street  to  Chest- 
nut Street,  thence  north  on  Chestnut  Street  to  a  connection 
with  the  existing  line  of  double  track  on  Guinotte  Avenue  to 
connect  with  the  Bast  Side  Electric  Railway.  Before  the  ex- 
tension of  said  line  is  made  through  the  North  Terrace  Park 
the  consent  of  the  Board  of  Park  Commissioners  shall  be  ob- 
tained.   When  said  line  is  constructed  on  Chestnut  Street  the 


The  Peace  Agreement.  ^81 

Company  shall  build  and  maintain  suitable  stairs  from  the  sur- 
face of  the  street  to  the  top  of  the  viaduct  over  Chestnut  Street 
at  Lexington  Avenue,  so  as  to  afford  the  public  easy  access 
from  said  viaduct  to  the  surface  of  said  Chestnut  Street;  the 
plans  of  said  stairs  shall  be  subject  to  the  approval  ot  the 
Board  of  Park  Commissioners,  and  the  work  ol  building  said 
stairs  and  constructing  said  track  through  North  lerrace  Park 
shall  be  done  in  a  manner  satisfactory  to  the  said  Park  Board. 
Before  the  line  shall  be  built  on  that  part  of  Chestnut  street 
lying  south  of  Independence  Boulevard  the  necessary  consents 
of  property  holders  shall  be  secured  by  said  Company;  pro- 
vided, that  if  the  Company  shall  fail,  neglect  or  refuse  to  se- 
cure said  consents,  then  any  citizen  shall  have  the  right  to  se- 
cure the  same,  and  upon  such  consents  being  secured  the  Com- 
pany shall  be  bound  to  build  said  road. 

If  said  Chestnut  Street  is  not  opened  and  graded,  and  said 
consents  of  property  holders  secured  within  three  (3)  years 
from  the  date  this  ordinance  becomes  a  law,  then  the  obliga- 
tion and  right  of  the  Company  to  build  said  extension  shall 
cease. 

CHANGES  IN  SUMMIT  STREET  LINE.— ABANDONMENT  OF 
NlNln  SiRLEl  LllNE  FKUM  MAIN  TO  GRAND  AVENUE. 

(p)  The  Company  shall  construct  a  line  of  double  track 
on  Broadway  from  Fourteenth  Street  to  Sixteenth  Street,  and 
on  Sixteenth  Street  from  Broadway  to  Washington  Street,  and 
on  Washington  Street  from  Sixteenth  Street  to  Twentieth 
Street,  and  on  Twentieth  Street  from  Washington  Street  to  Jef- 
ferson Street,  and  on  Jefferson  Street  from  Twentieth  Street 
to  the  Southwest  Boulevard,  and  also  shall  construct  double 
tracks  on  Washington  Street  from  Thirteenth  Street  to  Four- 
teenth Street.  The  above  work  to  be  done  on  or  before  the 
first  day  of  December,  1904.  Upon  completion  of  the  above 
construction,  the  Company  shall  abandon  the  operation  of 
double  tracks  upon  Fourteenth  Street  from  Broadway  to  Wash- 
ington Street,  on  Thirteenth  Street  from  Washington  Street  to 
Summit  Street,  and  on  Summit  Street  from  Thirteenth  Street 
to  Fourteenth  Street,  and  from  Seventeenth  Street  to  the 
Southwest  Boulevard,  and  on  Ninth  Street  from  Grand  Avenue 
to  Main  Street,  making  necessary  track  connections  at  the  in- 
tersections of  Ninth,  Main  and  Delaware  Streets,  when  the  elec- 
trifications of  Ninth  Street  is  completed,  and  immediately  there- 
after shall  take  up  the  tracks  so  abandoned  and  restore  the 
street  to  as  good  condition  as  it  would  have  been  had  this  line 
of  track  been  reconstructed. 


§26 


82  The  Peace  Agreement. 

TWELFTH  STREET  TUNNEL.— ELECTRIFICATION  OF 
TWELFTH  STREET  LINE. 

(q)  Whereas,  the  location  of  the  Union  Depot  is  not  yet 
definitely  known,  and  said  location  may  materially  affect  the 
interests  of  the  City  and  also  of  the  Company  with  reference 
to  the  proper  location  of  the  tunnel  for  the  use  of  the  Twelfth 
Street  line  through  the  west  bluff*,  and  also  the  location  of  the 
viaduct  from  the  westerly  end  of  said  tunnel;  therefore,  any 
provision  as  to  the  electrification  of  Twelfth  Street  at  this  time 
is  omitted,  except  that  it  is  agreed  that  in  any  event  the  road 
on  said  street  shall  be  electrified  from  approximately  Broad- 
way to  the  easterly  end  of  said  road  on  or  before  the  first  day 
of  December,  1905.  It  is  further  agreed  that.  Until  said  line 
is  electrified,  the  pavement  between  the  tracks  and  between 
the  rails  of  the  tracks  may  be  of  vitrified  brick,  and  the  spaces 
of  eighteen  inches  along  the  outside  of  the  outside  rails  of 
said  track  shall  be  so  laid  as  to  conform  to  the  pavement  of 
said  street  as  it  now  exists,  or  may  be  hereafter  changed,  and 
the  pavement  of  the  spaces  aforesaid  shall  be  at  once  placed 
in  a  good  condition  of  repair  in  a  manner  satisfactory  to  the 
City  Engineer  and  subject  to  his  approval.  When  said  road  has 
been  electrified  as  aforesaid,  then  the  pavement  between  the 
tracks  and  between  the  rails  of  the  tracks  and  for  the  space  of 
eighteen  inches  outside  of  the  outside  rails  shall  be  made  to 
conform  to  the  then  existing  pavement  on  the  rest  of  said 
street  and  the  general  paving  clause  hereof  shall  govern. 

It  is  expressly  agreed  and  understood  that  no  authority 
is  hereby  granted  to  said  Company  to  build  said  tunnel  or  via- 
duct. 

GENERAL  ROUTING. 

(r)  It  is  expressly  agreed  and  understood  that  the  City 
reserves  any  right  it  may  have  to  control  and  regulate  the 
matter  of  the  routing  of  the  cars  on  all  of  the  lines  herein 
referred  to,  and  all  enlargements  of  the  same,  whether  made 
by  construction,  purchase,  lease  or  otherwise,  it  being  the 
agreement  and  intention  that  the  City  shall  retain  any  right 
it  has  to  control  the  routing  of  all  street  cars  within  the  limits 
of  the  City,  as  the  said  limits  are  now  established  or  may  be 
hereafter  enlarged 

When  the  Holmes  Street,  Fifteenth  Street  and  Westport 
lines  are  electrified,  the  cars  on  said  lines  shall  be  brought  as 
far  north  as  Thirteenth  Street  on  Grand  Avenue.  From  that 
point  all  of  the  cars  on  said  lines  shall  be  operated  north  over 


The  Peace  Agreement.  83 

such  routes  as  will  best  serve  the  public,  it  being  the  intention 
to  provide  for  bringing  the  traffic  from  said  Holmes  Street, 
Fifteenth  Street  and  Westport  lines  after  the  electrification  of 
said  lines,  with  reasonable  looping,  in  as  nearly  as  practicable 
and  so  far  as  to  best  accommodate  the  travel  along  said  route, 
as  said  traffic  was  carried  when  said  lines  were  operated  as 
cable  lines.  Subject,  however,  to  the  right  of  the  City  to  rea- 
sonably regulate  same  as  the  best  interest  of  the  traveling  pub- 
lic may  demand.  But  the  cars  on  said  South  Broadway  line 
shall  be  operated  as  part  of  the  Westport  line,  directly  through, 
by  the  way  of  Broadway  and  Thirty-third  Street  and  South 
Main  Street  and  Grand  Avenue  as  far  north  as  Nineteenth 
Street,  and  then  on  Nineteenth  and  Walnut  Streets  to  sub- 
stantially the  business  portion  of  the  City,  without  transfer 
of  passengers  as  herefore  at  Thirty-third  and  Main  Streets. 
The  aforesaid  routing  shall  in  no  event  be  held  irrevocable  or 
unchangeable,  but  the  same  shall  always  be  subject  to  reason- 
able alternations  and  reasonable  changes  by  the  law-making 
authorities  of  Kansas  City;  subject,  however,  to  the  rights,  if 
any,  which  abutting  property  ow7iers  now  have  under  the 
franchise  for  said  lines  as  originally  built. 


FIFTEENTH  STREET  LINE  EXTENSION. 

(r-2)  On  or  before  December  1,  1904,  the  Fifteenth 
Street  line  shall  be  extended  to  Crystal  Avenue;  provided,  if 
before  that  date  any  suburban  line  at  least  ten  miles  in  length 
shall  be  built  to  Fifteenth  Street  and  Crystal  Avenue,  said  ex- 
tension shall  be  made  by  the  time  said  suburban  line  is  built 
and  in  operation. 

(s-e)  The  Metropolitan  Street  Railway  Company  shall, 
until  the  termination  of  its  franchise  rights  on  Walnut  Street, 
have  the  right,  and  it  shall  be  its  duty,  prior  to  December  1st, 
1903,  to  construct,  maintain  and  operate  a  single  track  railway 
upon  and  along  Tenth  Street  from  Main  Street  to  Grand  Ave- 
nue, upon  the  following  terms  and  conditions,  viz :  Said  single 
track  shall  be  constructed  as  nearly  as  practicable  in  the  cen- 
ter of  Tenth  Street,  but  the  City  reserves  the  right  at  any  time 
to  order  said  Company  to  move  said  track  toward  either  the 
northerly  or  southerly  side  of  Tenth  Street,  as  directed  by  the 
City,  a  distance  of  not  to  exceed  twelve  (12)  feet. 

And  if  said  Company  shall  fail,  neglect  or  refuse  to  move 
said  track,  and  to  restore  the  street  to  a  condition  satisfactory 
to  the  City  within  ninety  (90)  days,  upon  notice  by  the  City 
so  to  do,  then  the  City  may  cause  said  tracks  to  be  moved,  and 


§27 


84  The  Peace  Agreement. 

the  street  restored,  and  the  Company  shall  be  liable  to  the  City 
for  all  expense  it  shall  incur  in  the  doing  of  said  work. 

The  Company  jcnay  operate  a  single  track  on  Tenth  Street 
and  Ninth  Street,  between  Main  and  Wyandotte  Streets,  until 
the  City  shall  direct  that  it  shall  lay  a  double  track.  And,  if 
the  City  shall  so  direct,  it  shall  be  the  duty  of  said  road,  within 
ninety  (90)  days,  to  lay  said  track.  And  if  the  road  shall  fail, 
neglect  or  refuse  to  so  lay  said  double  track,  then  the  City  may 
remove,  or  cause  to  be  removed,  the  said  single  track,  not  to 
exceed  twelve  (12)  feet  to  either  the  northerly  or  southerly  side 
of  said  streets,  and  shall  have  the  right  to  lay,  or  cause  to  be 
laid,  another  track  paralleling  the  same. 

Said  single  track  shall  be  located  as  near  the  center  of 
Tenth  Street  and  Ninth  Street  as  practicable,  and  shall  be  sub- 
ject to  the  same  provisions  and  regulations  as  to  the  right  of 
use  of  the  same  by  other  street  car  companies,  as  govern  in 
case  a  double  track  is  built,  as  provided  in  Sections  S,  S-a,  S-b, 
S-c  and  S-d  of  Section  Four  of  this  Ordinance. 

TENTH  STREET  LOOP-COMPENSATION  TO  CITY.— RIGHT 
Of  OTHER  COMPANIES  TO  USE  . 

(s)  The  right  is  hereby  granted  to  the  Metropolitan 
Street  Railway  Company  to  construct  on  West  Tenth  Street 
a  line  of  double  track  from  Main  Street  to  Wyandotte  Street  to 
form  with  the  lines  now  on  the  streets  hereinafter  named,  a 
loop  described  as  follows:  On  Tenth  Street  from  Main  Street 
to  Wyandotte  Street,  thence  north  on  Wyandotte  Street  to 
Ninth  Street,  thence  east  on  Ninth  Street  to  Main  Street, 
thence  south  on  Main  Street  to  place  of  beginning.  And  it  is 
agreed : 

(s-a)  That  the  cars  of  any  other  street  raihvay  may  run 
over  and  upon  the  tracks  constituting  said  loop  or  any  portion 
thereof  upon  such  terms  and  conditions  as  the  Common  Coun- 
cil shall  hereafter  specify  by  reasonable  ordinance,  and  the 
right  to  use  said  loop  shall,  in  addition  to  the  rights  otherwise 
reserved  by  what  is  known  as  the  three  block  and  loop  clauses, 
as  set  forth  in  Sections  26  and  26-a  of  Ordinance  Number 
14188,  approved  April  14th,  1900,  and  in  Sections  6  and  7  of 
Ordinance  Number  45113,  approved  February  5th,  1889,  said 
provisions  being  expressly  continued  in  force. 

In  the  event  the  Street  Railway  Companies,  or  either  of 
them,  shall  contest  or  dispute  the  reasonableness  of  any  or- 
dinance passed  by  Kansas  City  permitting  other  roads  to  use 
its  tracks,  under  the  provisions  of  this  ordinance,  the  com- 
pany desiring  to  use  such  tracks  shall,  pending  said  dispute 


The  Peace  Agreement.  85 

and  contest,  have  the  right  to  use  the  tracks  and  poles  arid 
wires  and  electrical  currents  of  said  Companies,  but  this  sec- 
tion in  itself  shall  in  no  wise  he  held  to  be  a  grant  from  Kan- 
sas City  to  any  company  to  use  said  tracks;  but  before  such 
company  shall  have  such  right,  it  shall  be  necessary  for  the 
laiv  making  authorities  of  Kansas  City,  in  proper  manner,  to 
pass  the  necessary  ordinance  or  ordinances  therefor;  and  pro- 
vided, further,  if  said  Companies  dispute  the  reasonableness 
of  said  rates  fixed  by  the  Council,  that  before  any  company 
shall  have  the  right  to  so  use  said  trax^ks,  poles,  wires  and  cur- 
rents it  shall  execute  to  the  Company  owning  or  operating 
such  tracks  a  bond  in  form  and  amount  and  with  sureties  ap- 
proved by  the  Circuit  Court  of  Jackson  County,  Missouri,  or 
by  one  of  the  judges  of  said  court,  to  pay  the  compensation 
due  for  such  use  and  to  hold  the  Companies  owning  the  tracks 
harmless  from  damages  caused  by  the  new  company. 

(s-b)  Said  Metropolitan  Street  Railway  Company  shall 
operate  around  said  loop  a  number  of  cars  equal  to  the  num- 
ber now  running  upon  the  West  Ninth  Street  line.  All  of  the 
provisions  of  this  ordinance  relative  to  the  other  tracks,  etc.. 
authoHzed  herein,  shall  apply  to  said  line  on  Tenth  Street. 

(s-c)  As  compensation  therefor  '{V  Metropolitan  Street 
Railway  Company  shall  pay  to  Kansas  City  during  the  period 
of  this  grant  the  sum  of  $1,200  per  annum,  payable  annually 
on  the  first  day  of  June  of  each  year,  and  shall  permit  the 
City  to  use  its  tracks  free,  and  shall  furnish  the  necessary 
power  free  for  such  stropt  sprinkling  cc^  or  apparatus  as  the 
City  may  see  fit  to  use  in  sprinkling  the,  streets  over  which  the 
tracks  of  the  said  MetrovoUtan  Street^JRailway  Company,  or 
the  tracks  of  any  of  the  Railway  Comvitiies  which  are  parties 
to  this  agreement,  shall  run,  within  the  city  limits,  including, 
however,  the  Swope  Park  line.  The  city  shall  run  said  cars  as 
its  own  and  at  its  own  risk,  and  shall  hold  the  company  harm- 
less for  any  damasres  resulting  therefrom/ 

(s-d)  The  street  railway  companies  ^hereby  agree  that  as 
soon  as,  and  as  often  as  they  shall  construct  or  relay  any  of 
their  tracks  upon  Gr?^nd  Avenue  between  Nineteenth  Street  and 
Third  Street,  upon  Walnut  Street,  between  Thirteenth  Street 
and  the  present  northerly  terminus,  at  or  near  Second  Street, 
and  on  Main  Street  between  Nineteenth  Street  and  Third 
and  on  Delaware  Street  between  Ninth  Street  and  Third 
Street,  and  on  Wyandotte  Street  between  its  Dresent  northerlv 
terminus  at  or  near  Second  Street  and  Southwest  Boulevard, 
or  any  of  the  tracks  running  in  an  easterly  and  westerly  direc- 
tion between  Grand  Avenue  and  Wyandotte  Streets,  north  of 


86  The  Peace  Agreement. 

Twentieth  Street  they  will  lay  said  tracks  with  what  is  com- 
monly known  as  the  "Trilby"  rail. 

TIME  FOR  COMPLETION  OF  WORK. 

Section  5.  Whenever  in  this  ordinance  a  time  is  fixed 
within  which  the  Company  shall  extend,  build,  cause  to  be  con- 
structed or  electrify  a  line  or  viaduct  it  is  understood  that  if 
the  Company  is  in  any  instance  prevented  from  doing  any  such 
work  by  reason  of  unforseen  circumstances  or  conditions  which 
reasonable  diligence  could  not  have  guarded  against,  or  by  the 
act  of  the  city,  then  the  time  of  such  delay  shall  not  be  counted. 
Whenever  the  word  "electrify"  is  used  in  this  ordinance  it  shall 
be  construed  to  mean  that  the  road  shall  be  put  in  operation  and 
so  maintained  and  operated  as  an  electric  road. 

SUMMIT  STREET  AND  39TH  STREET  LINES. 

Section  6.  The  Summit  Street  electric  cars  are  to  oe  oper- 
ated as  far  as  Bell  street  as  soon  as  the  connection  can  be  made 
at  Thirty-ninth  and  Summit  Streets. 

RIGHT  OF  CITY  TO/d^EQUIRE  BUILDING  OF  OTHER 
EXTENSIONS. 

Section  7.  The  city  is  given  the  right  within  the  limits  of 
^2  the  city  as  now  established  or  hereafter  enlarged  to  require  the 
Companies  to  make  other  ^additional  extensions  and  connections 
of  and  tvith  any  line  07^~^knes  of  their  roads  where  reasonably 
necessary  for  the  convenience  of  the  inhabitants  of  the  city; 
provided,  that  the  aggregate  of  such  extensions  on  all  said 
rodds  so  required  by  the  city  shall  not  exceed  on  the  average 
more  than  one  mile  of  double  track  per  year  until  December, 
1905,  after  which  the  city  may  so  require  the  building  of  not 
to  exceed  on  the  average  of  two  miles  per  year. 

PAVING  BETWEEN  AND  OUTSIDE  TRACKS. 

Section  8.  Said  Railway  Companies  shall  pave  between 
their  tracks  and  between  the  rails  of  the  tracks,  and  for  eight- 
^^  een  inches  outside  of  the  outside  rails  of  their  tracks  with  the 
S"^  same  material  as  the  rest  of  the  street  is  paved,  and  shall  keep 
the  spaces  above  indicated  constantly  in  good  repair,  and  shall 
repave  said  spaces  at  the  same  time  the  rest  of  the  street  is  re- 
paved.  Where  cable  lines  now  exist,  rohich  are  to  be  replaced 
with  electric  roads,  as  herein  provided,  the  present  paving  of 
granite  blocks  or  brick  may  remain,  except  a^  otherwise  herein 


The  Peace  Agreement.  87 

provided,  until  said  roads  are  electrified,  but  said  paving  shall 
at  once  be  placed  in  a  good  condition  of  repair;  and  on  Inde- 
pendence Avenue  from  Cleveland  Avenue  to  the  present  eastern 
terminus  of  the  road  the  spaces  between  the  tracks  and  between 
the  rails  of  the  tracks,  and  for  eighteen  inches  outside,  shall 
be  at  once  paved  with  vitrified  brick;  and  on  any  other  tracks 
in  the  city,  where  there  is  no  pavement  between  the  tracks  the 
same  shall  at  once  be  paved  with  the  material  with  which  the 
rest  of  the  street  is  paved.  All  of  the  foregoing  to  be  done  in  a 
manner  satisfactory  to  the  City  Engineer.  Paving  on  Independ- 
ence Avenue  and  the  above  streets,  shall  be  completed  within 
sixty  days.  The  Company  may  use  a  toothing  of  a  kind  ap- 
proved by  the  Board  of  Public  Works  and  the  City  Engineer; 
it  is,  however,  agreed  that  if  at  the  time  the  extensions  herein 
provided  for  are  made  the  streets  are  either  macadamized  or 
not  paved,  the  Street  Railway  Company  is  required  to  pave 
between  its  tracks  and  the  rails  of  its  tracks  with  such  mate- 
rials as  may  be  designated  by  the  Board  of  Public  Works  af 
the  time  of  the  construction  of  said  extensions.  But  if  there- 
after the  rest  of  the  street  should  be  paved  with  a  different 
material,  the  Company  shall  not  be  required  to  change  such 
paving  so  as  to  correspond  with  the  paving  of  the  rest  of  the 
street,  until  the  space  to  be  paved  by  the  Railway  Company 
shall  need  repaving,  but  it  shall  pave  the  eighteen  inches  on 
either  side  as  and  when  the  rest  of  the  street  is  paved. 

UNIVERSAL   TRANSFERS— PRESERVATION    OF    CONTROL 

BY  CITY. 

Section  9.  All  transfer  privileges  heretofore  given  and 
granted  by  the  Company  shall  be  continued,  unless  circum- 
stances shall  render  the  same  unreasonable,  and,  in  addition  §ld 
thereto,  universal  transfers  shall  be  granted,  over  all  parts  of 
the  system  in  Kansas  City,  Missouri,  and  also  over  the  system 
in  Kansas,  as  the  same  now  exists,  or  may  be  hereafter  ex- 
tended ivithin  the  then  limits  of  Kansas  City,  Kansas,  Rosedale, 
Argentine,  and  intermediate  points,  so  long  as  the  Companies, 
their  representatives,  successors  or  assigns  shall  directly  or  in- 
directly control,  be  interested  in,  operate  or  have  operating, 
traffic  or  carrying  arrangements  with  the  Company  or  Cork- 
panies  owning,  operating  or  controlling  the  said  lines  of  street 
railway  in  Kansas  City,  Kansas,  Rosedale,  or  Argentine,  and 
also  so  long  as  any  of  the  cars  of  the  Kansas  City,  Missouri, 
lines  shall  operate  over  any  of  the  tracks  of  the  said  Kansas 
lines,  or  the  cars  of  any  of  the  said  Kansas  lines  shall  operate 
over  any  of  the  tracks  of  the  Kansas  City,  Missouri  lines.    It 


88  The  Peace  Agreement. 

being  the  intention  that  the  provisions  as  to  transfers  shall  ex- 
tend to  all  street  railway  lines  in  Kansas  City,  Kansas,  Rose- 
dale,  Argentine,  and  all  such  lines  within  any  extension  of  the 
corporate  limits  of  said  cities  or  any  of  them,  which  shall  re- 
ceive from  or  deliver  to,  the  said  Companies  in  Missouri  any 
of  their  passengers  or  cars. 

And  the  Companies  shall  make  no  traffic  or  transfer  ar- 
rangements with  any  companies  operating  lines  hereafter 
built  into  Kansas  City,  Kansas,  Rosedale  or  Argentine,  unless 
the  companies  shall  give  like  transfers  over  their  lines,  as 
above  provided. 

The  foregoing  provisions  as  to  transfers  shall  not  be  so 
construed  as  to  enable  passengers  to  make  what  is  commonly 
known  as  a  *'loop**  By  a  *'loop"  is  meant  such  a  system  of 
transfers  as  tvill  enable  a  passenger  to  return  substantially  to 
the  initial  point  for  a  single  fare.  It  being  the  intention  of 
this  contract  that  transfers  shall  be  furnished  that  will  enable 
a  passenger  to  go  by  a  reasonably  direct  route  to  his  destina- 
tion at  any  point  on  the  company's  lines  for  a  single  fare,  and 
the  provision  as  to  **loops**  shall  not  be  so  construed  as  to 
interfere  therewith,  but  it  shall  not  be  so  construed  that  a 
transfer  shall  be  given  so  as  to  enable  a  passenger  to  go  to 
one  point  and  stop  there  and  then  return  by  some  other  route 
to  the  point  from  which  he  started.  But  the  city  specially 
reserves  to  itself  the  right  and  power  by  reasonable  ordinances 
to  regulate  the  matter  of  transfers  so  as  to  carry  out  the  spirit 
of  this  section.  The  Company  may  require  a  passenger  who 
requests  a  transfer  upon  a  transfer  to  then  declare  his  destina- 
tion. -  ^'*-. 


EQUIPMENTS,    HEATING,    LIGHTING,    AND    SPEED    OF 

CARS. 

^2c  Section  10.     Said  Street  Railway  Company  agrees  to  at 

once  place  upon  all  their  roads  and  to  at  all  times  run  and 
operate  upon  their  roads  good  and  convenient  cars  to  accom- 
modate public  travel,  and  shall  keep  the  same  clean,  road- 
worthy,  properly  heated  and  lighted,  and  in  good  and  safe 
order  and  condition,  and  shall  at  all  times  keep  its  road  bed 
and  tracks  in  good  order  and  condition  so  as  to  afford  safe 
and  convenient  travel  thereon,  and  the  said  cars  shall  at  all 
times  be  equal  in  pattern,  style,  finish  and  condition  to  cars 
in  ordinary  use  on  the  best  managed  and  equipped  lines  of 
street  railway  in  the  United  States,  and  said  cars  and  machin- 
ery for  operating  the  same  shall  at  all  times  be  provided  with 


The  Peace  Agreement.  89 

the  best  improved  appliances  for  protecting  the  lives  and 
persons  of  passengers  on  said  road  and  of  the  public  traveling 
on  and  across  the  streets  over  ivhich  said  roads  may  be  oper- 
ated, but  this  shall  not  require  the  companies  to  dispense!  av  (j 
with  their  cable  cars  on  cable  lines  before  said  lines  are  elecj>W^ 
trifled  as  herein  provided,  and  all  cars  shall  be  run  at  all  times 
and  places  at  a  reasonable  rate  of  speed  under  the  particular 
circumstances  and  in  no  event  shall  any  street  car  be  run  or 
operated  at  a  greater  rate  of  speed  than  fifteen  miles  per  hour 
within  that  territory  of  the  city  between  Troost  avenue  on  the 
east,  Nineteenth  Street  on  the  south  inclusive^  the  State  Line 
and  Missouri  River;  provided,  that  this  shall  not  apply  to  any 
elevated  road.  Outside  of  said  limits  said  street  cars  shall* 
not  be  run  at  a  greater  rate  of  speed  than  twenty  miles  per 
hour;  provided,  that  said  limitations  shall  not  apply  to  the 
Swope  Park  Line  or  the  Independence  Line. 

SCHEDULES  ON  WHICH  CARS  SHALL  BE  RUN. 

In  addition  to  the  present  requirements  as  to  schedules 
on  which  cars  shall  be  run,  said  Companies  shall  run  their 
cars  on  the  following  lines  daily  (except  Swope  Park  Line)  at 
least  as  often  as  hereinafter  set  forth. 

Between  the  hours  of  6  a.  m.  and  8:30  a.  m.  and  5  p.  m. 
and  7  p.  m.  at  no  longer  intervals  apart  than  three  and  one- 
half  minutes  on  the  following  lines,  i.  e.,  the  Independence 
Avenue,  East  Ninth  Street,  Twelfth  Street,  Fifteenth  Street, 
and  Westport  lines,  and  on  that  part  of  Eighteenth  Street 
and  Nineteenth  Street  west  of  Vine  Street,  and  on  the  follow- 
ing lines  at  no  longer  intervals  apart  than  four  and  one-half 
minutes,  i.  e,,  on  the  Troost  Avenue,  Holmes  Street  and  North- 
east lines. 

When  the  north  and  south  lines,  i.  e.,  Prospect  and  Chest- 
nut Street  lines  and  Jackson  Avenue  and  Hardesty  Avenue 
lines  are  completed  and  in  operation  the  city  may  prescribe  by 
reasonable  ordinance  schedules  on  which  cars  on  said  lines 
shall  be  run. 

And  on  the  East  Side  Electric  Railway  cars  shall  be  run 
as  often  as  follows:  From  6  a.  m.  to  8:30  a.  m.  and  5  p.  m. 
to  7  p.  m.,  six  and  one-half  minutes,  from  8 :30  a.  m.  to  5  p.  m. 
and  from  7  p.  m.  to  10  p.  m.  eight  and  one-half  minutes,  and 
from  10  p.  m.  to  12  o'clock  midnight  ten  minutes,  and  there- 
after the  regular  owl  car  service. 

Cars  shall  be  run  on  the  following  Kansas  City,  Kansas, 
lines  from  Kansas  City,  Missouri,  on  the  following  schedule: 

Armourdale  line  between  6  a.  m.  and  8:30  a.  m.  and  5  p. 


%  The  Peace  Agreement. 

m.  and  7  p.  m.  at  no  longer  intervals  apart  than  five  and  one- 
half  minutes,  and  between  8:30  a.  m.  and  5  p.  m.  and  7  p.  m. 
and  10  p.  m.  at  no  longer  intervals  apart  than  seven  and  one- 
half  minutes,  and  between  10  p.  m.  to  12  o'clock  midnight  at 
no  longer  intervals  apart  than  ten  minutes,  with  regular  owl 
car  service. 

On  the  Quindaro  line  between  the  hours  of  6  a.  m.  and 
8:30  a.  m.  and  5  p.  m.  and  7  p.  m.  at  no  longer  intervals  apart 
than  six  and  one-half  minutes;  between  8:30  a.  m.  and  5  p. 
m.  and  7  p.  m.  to  12  o'clock  midnight,  at  no  longer  intervals 
apart  than  ten  minutes,  with  regular  owl  car  service. 

On  the  Chelsea  Park  line  from  6  a.  m.  to  8:30  a.  m.  and 
from  5  p.  m.  to  7  p.  m.  at  no  longer  intervals  apart  than  six 
and  one-half  minutes,  and  from  8:30  a.  m.  to  5  p.  m.  and  from 
7  p.  m.  to  12  o'clock  midnight  at  no  longer  intervals  apart  than 
ten  minutes,  with  regular  owl  car  service. 

On  the  Grandview  and  Edgerton  lines,  between  the  hours 
of  6  a.  m.  and  12  o'clock  midnight,  at  no  longer  intervals  apart 
than  ten  minutes,  wHh  regular  owl  car  serv^'ce. 

On  the  Independence  city  line  between  6  a.  m.  and  8:30 
a.  m.  and  5  p.  m.  and  7  p.  m.  at  no  longer  intervals  anart  than 
ten  minutes,  and  between  8:30  a.  m.  and  5  p.  m.  and  7  p.  m. 
and  10  p.  m.  at  no  longer  intervals  anart  than  fifteen  minutes, 
and  between  10  p.  m.  and  12  o'clock  midnight,  at  no  longer 
intervals  apart  than  twenty  minutes,  and  between  12  o'clock 
midnight  and  1  a.  m.  at  no  longer  intervals  apart  than  thirty 
minutes;  and  thereafter  at  no  longer  intervals  apart  than 
sixty  minutes. 

As  soon  as,  and  often  as  any  of  said  roads  are  electrified 
then  owl  cars  shall  he  run  on  the  same  in  accordance  with  the 
schedule  and  regulation  in  what  is  cow/monly  knotvn  as  the 
"Owl  Car  Ordinance/'  namely,  Ordinance  No,  17081.  And 
the  city  reserves  the  ripht  to  at  any  time  regulate  and  pre- 
scribe by  reasonable  ordinance  the  number  of  hours  in  each 
day  and  night  the  cars  on  said  street  railway  shall  run,  and 
the  sveed  and  frequency  with  tvhich  cars  shall  be  run. 

Provided  that  the  foregoing  schedules  may  be  varied  on 
Sundays  so  as  to  best  accommodate  the  church,  park  and 
recreation  travel. 

WATCHMEN  TO  BE  PROVIDED  BY  COMPANIES  AT 
CROSSINGS  AND  DANGEROUS  CURVES. 

§4  Section    11.     At    all   points    where    said    street    railway 

tracks  cross  the  tracks  of  any  steam  railway  company,  watch- 
men shall  be  constantly  stationed  and  kept  to  perform  such 


The  Peace  Agreement.  M 

duties  as  may  be  prescribed  by  ordinance;  but  the  city  shall 
pass  necessary  ordinances  requiring  the  steam  raihvay  com- 
panies to  join  in  the  performance  of  this  duty,  and  in  the  pay- 
ment for  the  service;  but  if  said  Railway  Companies  fail  to 
comply  tvith  the  terms  of  such  ordinances,  then  the  Street 
Railway  Company  shall  station  such  watchman  as  aforesaid. 
Watchmen  shall  be  placed  by  the  Street  Railway  Companies  at 
all  points  ivhere  their  lines  of  track  intersect,  cross  or  form  a 
junction  and  at  dangerous  curves  between  the  Missouri  River 
and  Thirteenth  Street  and  between  McGee  Street  and  Wyan- 
dotte Street,  and  at  such  other  points  within  the  city  as  may 
be  required  by  a  reasonable  ordinance.  It  is  understood  by 
this  that  the  Company  recedes  from  its  position  that  the  con- 
ductors or  gripmen  can  act  as  a  flagman  or  watchman.  The 
Street  Raihvay  Company  shall  stop  its  cars  for  the  purpose  of 
taking  on  and  letting  off  passengers  before  it  shall  cross  a 
street  or  intersecting  line.  The  city  reserves  the  right  to  con- 
trol and  regulate  by  reasonable  ordinance  all  the  matters  men- 
tioned in  this  section. 

COMPANIES  TO  PROVIDE  ELECTRIC  ARC  LIGHTS. 

Section  12.  Electric  arc  lights  shall  be  maintained  by 
said  companies  at  all  points  where  their  lines  cross  the  lines 
of  any  steam  railway  company,  but  the  city  shall  pass  neces- 
sary ordinances  requiring  the  steam  railway  companies  to 
bear  their  share  of  the  expenses  of  said  lights,  but  failure  of 
said  steam  railway  companies  to  comply  with  such  ordinance 
shall  not  relieve  the  Street  Railway  Companies  of  the  duty 
aforesaid.  And  at  all  points  where  the  lines  of  said  Street 
Railway  Companies  intersect,  cross,  or  make  a  junction  vrith 
each  other,  and  at  dangerous  curves,  it  shall  maintain  arc 
lights. 

STEAM  RAILWAYS  TO  PAY  PART  OF  COST  OF  WATCH- 
MEN AND  LIGHTS. 

Section  13.  Where  a  line  of  street  railway  crosses  the 
tracks  of  a  steam  raihvay  company,  the  city  shall,  by  ordi- 
nance, direct  the  payment  by  the  steam  raihvay  company  of  at 
least  one-half  of  the  expense  of  watchmen  and  lights,  as  pro- 
vided in  Sections  11  and  12,  hereof,  and  where  there  are 
crossed  more  than  two  tracks  of  one  or  more  steam  railways, 
then  the  city  shall,  by  ordinance,  direct  that  the  steam  railway 
companies  shall  pay  as  much  over  one-half  of  such  expense  as 
is,  in  the  opinion  of  the  law-making  power  of  the  city,  reason-  §§ 


§6 


92  The  Peace  Agreement. 

able  and  just.  When  the  Street  Railway  Companies  in  any  in- 
stance pay  the  ivhole  expense,  as  provided  for  in  said  sections y 
then  they  may,  in  the  name  of  the  city,  hut  at  their  expense, 
maintain  such  legal  proceedings  against  the  steam  railway  com- 
panies as  may  he  necessary  to  require  them  to  perform  their 
duties  and  refund  to  the  Street  Railway  Companies  the  amount 
due  them, 

ELECTRIC  POWER  FOR  POLICE  AND  FIRE  ALARM  SYS- 
TEM TO  BE  FURNISHED  BY  COMPANIES  FREE. 

Section  14.  The  Metropolitan  Street  Railway  Company 
shall  furnish  free  of  charge  electric  power  to  charge  the  stor- 
age hatteries  of  the  police  and  fire  alarm  system  of  the  city, 

SUBURBAN    CARS    OPERATED    IN    CITY.— CONDITIONS. 

Section  15.  Said  Companies  shall  make  arrangement 
with  the  managements  of  all  suburban  lines  not  entering  the 
city,  which  are  now  or  may  hereafter  construct  their  lines  to 
connect  at  the  city  limits  (upon  request  by  the  management 
of  said  suburban  lines),  by  which  the  Street  Railway  Compa- 
nies will  place  their  crews  in  charge  of  the  cars  of  said  sub- 
urban companies  at  the  point  of  connection  and  carry  the  cars 
as  their  own,  with  the  passeyigers,  through  to  substantially 
the  center  of  the  business  portion  of  Kansas  City,  Missouri. 
All  passengers  shall  pay  the  same  fare  and  be  entitled  to  the 
same  transfer  privileges  as  though  they  had  taken  regidar  pass- 
age on  the  cars  of  the  Street  Railway  Companies.  The  Street 
Railway  Companies  shall  have  the  right  to  collect  all  fares  for 
passage  on  their  roads.  The  Street  Railway  Companies  shall 
pay  to  the  suburban  companies  for  the  use  of  their  cars  one 
cent  for  each  passenger  turned  over  to  them  by  the  suburban 
companies,  and  the  Street  Railway  Companies  shall,  in  a  prompt 
and  business-like  way,  return  said  cars  to  the  place  where  said 
cars  were  turned  over  to  them.  Cars  of  suburban  lines  must 
be  so  constructed  as  to  be  suitable  for  use  on  the  street  rail- 
way tracks  with  convenience  and  safety. 

If  said  suburban  cars  carry  United  States  mail,  or  light 
packages  of  the  character  described  in  Section  16  hereof,  then 
the  same  shall  be  carried  and  delivered  at  the  nearest  point  on 
the  lines  of  said  company  to  their  destination,  and.  the  com- 
pensation of  the  Street  Raihuay  Company  for  said  services 
shall  be  governed  by  the  rules  and  regulations  set  forth  in 
Section  16  of  this  ordinance.  But  the  city  reserves  the  right  to 
prescribe  by  ordinance  the  kind  of  packages  which  shall  be 


The  Peace  Agreement.  93 

carried  on  said  suburban  cars  within  the  city,  or  to  prohibit 
the  same  if  it  so  desires. 

If  suburban  lines  cannot  connect  with  the  lines  of  the 
street  railway  at  the  City  limits,  then  they  shall  have  the  right 
to  connect  with  their  tracks  within  and  as  near  the  City  limits 
as  practicable.  But  provisions  of  this  shall  not  be  construed 
as  any  waiver  of  the  right  of  the  City  to  in  any  instance 
determine  whether  or  not  it  will  permit  such  suburban  cars 
to  so  enter  the  City. 


RIGHT  OF  COMPANY  TO  CARRY  LIGHT  PARCELS  AND 
PACKAGES.— RESERVATION  BY  CITY  TO  CONTROL 
CHARGES. 

Section  16.  Each  Street  Railway  Company  may  carry  on 
its  lines  light  packages  or  parcels  not  in  possession  of  the 
passenger,  but  this  shall  not  be  done  to  the  interference  with 
the  passenger  traffic.  Rates  fixed  by  the  Company  for  su^h 
service  must  be  uniform  and  reasonable,  and  the  City  reserves 
to  itself  the  right  by  reasonable  ordinance  to  regulate  this 
privilege, 

SWOPE  PARK  LINE. 

Section  17.  On  or  before  June  1,  1904,  the  Metropolitan 
Street  Railway  Company  shall  construct  or  cause  to  be  con- 
structed a  double  line  of  track  from  Kansas  City  to  Swope 
Park,  connecting  with  one  or  more  of  its  north  or  south  lines. 
The  construction  of  said  road  shall  be  first-class  construction 
for  suburban  lines  of  railway,  and  saM  Company  shall  run 
upon  said  road  from  the  fifteenth  day  f^^^ay  to  the  first  day 
of  November  of  each  year  sufficient  cars  to  accommodate  the 
travel  of  the  public  to  said  park  and  intermediate  points,  and 
carry  the  people  with  comfort  and  convenience. 

SCHEDULE  FOR  CARS. 

Said  cars  during  the  period  aforesaid  shall,  between  the 
hours  of  8  a.  m.  and  8  p.  m.,  run  at  least  as  often  as  once  in 
every  thirty  minutes  each  way  during  the  first  five  years  of 
the  operation  of  the  road,  which  said  schedule  is  fixed  as  the 
minimum,  and  thereafter  at  least  as  often  as  once  in  every 
fifteen  minutes  during  the  hours  and  period  of  each  year  as 
aforesaid,  which  said  schedule  is  fixed  as  the  minimum;  but  in 
any  event  during  the  period  and  hour  aforesaid  said  cars  shall 
run  often  enough  to  carry  the  public  with  convenience  and 


94  '^HE  Peace  Agreement. 

comfort,  providing,  however,  that  the  Common  Council  shall 
have  the  right  to  provide  that  cars  shall  be  run  during  the 
entire  year  and  during  all  hours  of  the  day  from  6  o'clock  a.  m. 
to  1  o'clock  a.  m.  or  during  any  other  hours  between  the  hours 
last  above  named,  but  said  right  of  the  Common  Council  can 
only  be  exercised  by  reasonable  ordinance,  and  by  "reasonable 
ordinance"  is  meant  such  an  ordinance  as  shall  not  provide 
a  schedule  which  shall  cause  said  company  to  expend  more 
money  in  the  operation  of  the  road  than  the  amount  of  fares 
or  other  compensation  received  by  it  through  operating  said 
road.  Provided,  further,  that  if  the  limits  of  the  City  are 
hereafter  extended  so  as  inchide  the  whole  or  a  portion  of 
said  Swope  Park  line,  then  excepting  as  to  the  provisions 
hereof,  giving  said  Company  an  exclusive  right  of  way,  the 
rights  and  obligations  of  the  parties  hereto  as  to  that  portion 
of  the  line  within  the  City  limits  as  extended  shall  be  the  same 
as  those  governing  the  ordinary  lines  of  the  Metropolitan 
Street  Railway  Company,  its  successors  and  assigns,  within 
the  limits  of  the  City  limits. 

EQUIPMENT. 

The  equipment  of  said  road  shall  be  equal  to  that  used 
upon  first-class  suburban  roads  or  that  specified  in  this  ordi- 
nance for  use  upon  the  streets  of  the  City,  and  said  cars  shall 
be  properly  operated,  heated  and  lighted,  when  heat  and  light 
are  necessary,  which  the  City  may  have  the  right  to  regulate 
by  reasonable  ordinance. 

SELECTION  AND  LOCATION  'OF  ROUTE. 

The  northerly  end  (or  the  connection  of  the  Swope  Park 
line  with  the  Street  Railway  system  of  the  City)  shall  be 
approximately  at  Forty-seventh  Street  or  Forty-eighth  Street 
and  Troost  Avenue,  and  shall  be  constructed  to  Swope  Park 
over  a  practicable  route  within  the  territories  bounded  as  fol- 
lows : 

On  the  west  by  the  line  of  Troost  Avenue  extended  south, 
and  said  road  shall  at  no  point  run  further  south  than  one 
hundred  (100)  feet  south  of  the  south  line  of  Sixty-ninth 
Street  extended.  All  of  said  streets  are  shown  on  Plate  39 
of  Tuttle  &  Pike's  map  of  Kansas  City  for  the  year  1900. 
Wherever  the  said  road  shall  run  along  or  across  any  street 
of  Kansas  City,  it  is  understood  that  the  road  shall  procure 
any  necessary  consents  of  the  property  owners,  and  this  ordi- 
nance shall  be  taken  as  the  permission  and  authority  of  said 


The  Peace  Agreement.  95 

City  to  go  upon  such  streets  when  the  foregoing  necessary 
prerequisite  has  been  complied  with. 

SWOPE  HIGHWAY.— CHARACTER  OF  ROUTE. 

The  route  pursued  by  said  railroad  shall  be  at  least  one 
hundred  and  fiity  (150)  feet  in  width  throughout  its  entire 
length  from  the  point  of  intersection  with  Forty-seventh  Street 
or  Forty-eighth  Street,  and  said  route  shall  be  known  as 
"Swope  Highway."  If  any  part  of  said  route  shall  be  upon  a 
street  as  now  laid  out,  the  portion  of  said  street  so  occupied 
shall  be  counted  as  a  portion  of  the  said  one  hundred  and  fifty 
(150)  feet. 

LOCATION  OF  TRACKS.— CONTROL  BY  PARK  BOARD. 

The  tracks  on  said  railway  shall  be  located  upon  a  strip 
of  said  highway,  but  shall  not  be  nearer  than  a  distance  of 
thirty  (30)  feet  from  the  side  of  said  highway,  and  either  on 
the  right  hand  or  left  hand  side  of  said  highway,  unless  with 
the  consent  of  the  Board  of  Park  Commissioners  of  Kansas 
City  another  location  is  selected  by  the  Company,  and  said 
road  shall  not  occupy  to  exceed  thirty  (30)  feet  in  width  of 
said  highway.  On  said  thirty  (30)  feet  the  Railway  Company 
shall  have  the  exclusive  right  of  way;  subject,  however,  to 
reasonable  regulations  as  aforesaid,  and  as  to  public  cross- 
ings as  established  by  the  County  Court  or  the  Board  of  Park 
Commissioners. 

Said  route  shall  be  at  least  one  hundred  and  fifty  (150) 
feet  in  width;  provided,  however,  that  the  Park  Board  shall 
have  the  right  to  reduce  the  width  of  the  route  selected  by  it 
or  by  said  Company  to  less  than  one  hundred  and  fifty  (150) 
feet  for  a  portion  of  said  route  in  order  to  avoid  legal  com- 
plications, should  they  arise,  but  in  no  event  shall  said  route 
be  reduced  to  less  than  thirty   (30)   feet. 

DATE  OF  SELECTION  OF  ROUTE. 

The  said  Company  shall  have  six  months  from  the  date 
this  ordinance  becomes  a  law  in  which  to  select,  subject  to  the 
foregoing  provisions,  said  route;  and  if  within  said  time  said 
Company  shall  not  have  selected  the  right  of  way  for  itself, 
including  said  highway,  then  the  Board  of  Park  Commission- 
ers of  Kansas  City  shall  have  the  right  to  select  and  secure 
said  route;  but  if  the  Board  of  Park  Commissioners  of  Kan- 
sas City  shall  not  so  select  said  route  within  twelve  months 


96  The  Peace  Agreement. 

after  this  ordinance  takes  effect,  then  said  Company  shall  con- 
struct said  road  to  Swope  Park  over  a  route  within  the  limits 
aforesaid  to  be  selected  by  it,  but  shall  be  under  no  obliga- 
tion to  do  more  than  secure  a  thirty  (30)  foot  right  of  way; 
but  in  any  event  said  road  shall  be  in  operation  as  aforesaid 
on  or  before  June  first,  1904.  The  route  selected  by  either  the 
Company  or  Park  Board  shall  be  equally  as  practicable  and  as 
good  a  route  for  said  highway  to  said  park  as  that  which  has 
been  heretofore  tendered  by  Homer  Reed  and  associates,  and 
known  as  the  "Homer  Reed  Route." 

By  the  term  "practicable  route"  is  meant  a  right  of  way, 
the  cost  of  grading,  construction,  operation  and  maintenance 
of  which  shall  be  substantially  as  favorable  as  the  proposition 
made  by  the  proprietors  of  the  so-called  "Homer  Reed  Route," 
which  is  hereby  referred  to  only  in  order  to  fix  a  visible  stand- 
ard of  comparison. 

TITLE  TO  PORTION  OF  ROUTE  NOT  IN  CITY. 

The  title  to  the  portions  of  said  route  which  are  not  now 
public  highways  shall,  subject  to  the  right  of  way  of  the 
Street  Railway  Company,  be  conveyed  to  such  grantee  or 
grantees  as  the  Board  of  Park  Commissioners  of  Kansas  City 
shall  designate. 

FARE  ON  SWOPE  PARK  LINE. 

Said  Company  shall  at  all  times  carry  passengers  to  and 
from  said  park  and  intermediate  points  for  a  single  fare  of  5 
cents  each  way,  with  full  transfer  privileges  to  and  from  all 
lines  of  the  Companies  as  hereinbefore  specified,  it  being  the 
intention  that  such  privilege  as  to  transfers  shall  be  extended 
to  passengers  upon  said  Swope  Park  line  as  are  reserved  in 
this  ordinance  to  persons  traveling  upon  the  street  car  lines 
referred  to  in  this  ordinance. 

REPORT  BY  COMPANY  OF  FARES  COLLECTED  ON  SWOPE 

PARK  ROUTE. 

The  Company  shall,  upon  request  of  the  Mayor  or  Com- 
mon Council,  report  the  fares  collected  on  the  Swope  Park  line 
and  the  cost  of  operation  of  same. 

SUMMIT  STREET  VIADUCT. 

Section  18.  The  Street  Railway  Company  shall  build  and 
maintain  a  viaduct  across  the  tracks  of  the  Kansas  City  Belt 


'      The  Peace  Agreement.  97 

Railway   Company  at   Summit  Street  the  full   width  of  said 
Summit    Street   as   now   established,    excepting   that   the    ap- 
proaches to  said  viaduct  may  be  built  a  width  not  less  than 
thirty-six  feet  for  a  length  approximately   one   hundred   and 
seventy-five  feet  on  the  north  end  of  said  viaduct  and  approxi- 
mately two  hundred  and  twenty-five  feet  on  the  south  end  of 
said  viaduct;  and,  provided,  further,  that  should  the  city  desire 
the  said  viaduct  along  said  Summit  Street  to  be  built  the  full 
width   of   Summit   Street   as   now   established   for   the   entire 
length    of   said    viaduct,    including   the   approaches,    then    the 
Company   shall   build   said   viaduct   such   full   width,   provided 
that   the   damages   to   property   owners   when   ascertained   by 
private   agreement   or   by   legal   proceedings   shall   not   exceed 
thirty  thousand  dollars,  in  which  event  the  viaduct  is  to  be 
built   as    last   aforesaid,    and    damages    not    to    exceed   thirty 
thousand   dollars   shall   be   paid   by   said   Companies,   whether 
said  damages  may  in  said  legal  proceedings  be  assessed  against 
said  Company  of  the  Kansas  City  Belt  Railway  Company,  or 
both   companies,    direct    or    assessed    as   benefits    against   the 
property   holders    within   any   benefit   district   which   may   be 
estabhshed;  provided,  further,  that  in  the  event  said  damages 
exceed  thirty  thousand  dollars,  then  the  City  may,  at  its  op- 
tion, pay  or  cause  to  be  paid  without  further  costs  to  the  Com- 
panies the  excess  over  thirty  thousand  dollars,  in  which  event 
it  shall  have  the  right  to  direct  that   said   viaduct   shall   be 
built  the  full  width  as  aforesaid. 

Said  viaduct  to  be  completed  by  the  31st  day  of  December, 
1903,  unless  delayed  by  legal  proceedings,  and  in  case  legal 
proceedings  are  brought,  then  the  City  Counselor  shall  have 
the  right  to  appear  in  said  cause  for  the  purpose  of  procuring 
a  speedy  disposition  of  the  same,  and  the  road  shall  in  all  rea- 
sonable ways  seek  to  secure  the  completion  of  said  viaduct 
within  the  time  limited,  and  to  this  end  shall  endeavor  to 
secure  a  speedy  determination  of  any  litigation  which  may  be 
brought  as  possible. 

If  the  railway  company,  the  tracks  of  which  are  to  be 
crossed  by  said  viaduct,  shall  fail,  neglect  or  refuse  to  arrange 
with  said  Street  Railway  Company  to  pay  its  fair  share  of 
the  costs  of  said  viaduct,  and  the  damages  caused  thereby, 
then  the  Street  Railway  Company  shall,  within  thirty  days, 
give  notice  to  Kansas  City  of  that  fact,  and  within  a  reason- 
able time  thereafter  the  City  shall  pass  the  necessary  reason- 
able ordinance  requested  by  the  Street  Railway  Company  to 
compel  said  Belt  Railway  Company  to  co-operate  in  the  con- 
struction of  said  viaduct  and  to  pay  two-thirds  of  the  expense 


98  The  Peace  Agreement. 

thereof,  and  the  Street  Railway  Company  shall  have  the  right 
to  bring  and  prosecute  in  the  name  of  the  City  such  proceed- 
ings as  are  necessary  to  compel  said  Belt  Railway  Company 
to  pay  its  share  of  the  expense  as  aforesaid,  and  to  do  its 
legal  duty  in  the  premises,  but  said  proceedings  shall  be  con- 
ducted without  cost  or  expense  to  the  City,  and  the  said  Street 
Railway  Company  shall  hold  the  city  harmless  by  reason  of 
any  such  cost  or  expense. 

Whenever  the  City  shall,  by  ordinance,  require  the  build- 
ing of  a  viaduct  where  the  street  car  lines  cross  at  grade  the 
§20  ^^^^^  ^f  si^f^'^  railroad  on  Lydia  Avenue,  the  street  railroad 
companies  shall  join  in  such  construction  and  pay  their  rea- 
sonable proportion  of  the  cost  thereof.  But  nothing  herein  shall 
prevent  the  City  from  exercising  by  other  ordinances  any 
power  it  may  have  to  fix  other  terms  and  conditions  on,  or  the 
time  within  which  said  viaduct  shall  be  built.  The  said  via- 
duct shall  be  built  without  cost  to  the  city. 

Nothing  in  this  ordinance  shall  be  so  construed  as  any 
limitation  whatever  upon  the  right  of  the  City,  if  any  it  has 
or  shall  have,  to  require  the  construction  of  other  viaducts. 

By  the  execution  of  this  instrument  neither  of  the  parties 
hereto  make  any  admission  whatsoever  as  to  the  extent  of 
the  damages,  if  any,  which  may  be  caused  by  the  building  of 
said  viaduct. 

The  City  shall  have  the  right  within  a  reasonable  time  to 
pass  ordinances  and  take  proceedings  to  ascertain  the  amount 
of  damages  to  the  property  owners,  if  any,  occasioned  by  the 
building  of  said  viaduct  the  full  width  of  the  street,  and  if 
said  damages  are  thirty  thousand  dollars  or  less,  the  same 
shall  be  paid  by  the  Street  Railway  Company;  if  more,  the 
City  can  then  exercise  its  option  to  pay  or  cause  to  be  paid 
the  excess  over  thirty  thousand  dollars,  or  it  may  require  the 
viaduct  to  be  built  as  in  this  ordinance  first  described,  to-wit, 
the  approaches  thirty-six  feet  wide. 

The  said  viaduct  to  be  built  in  accordance  with  plans  and 
specifications  approved  by  the  Board  of  Public  Works  and  the 
City  Engineer  of  Kansas  City,  Missouri,  the  plans  to  be  such 
as  to  cut  off  crossing  at  grade  with  tracks  of  the  Kansas  City 
Belt  Railway  Company.  The  construction  of  said  viaduct  to 
be  satisfactory  to  the  City  Engineer  of  Kansas  City,  Missouri. 

ABANDONMENT  OF  LINE  ON   GENESEE  STREET.— CON- 
STRUCTION ON   WYOMING. 

Section  19.  On  or  before  July  1st,  1903,  the  Company 
shall  abandon  the  operation  of  its  line  on  Genessee  Street  from 


The  Peace  Agreement.  99 

Sixteenth  Street  to  Nineteenth  Street,  and  build  and  maintain 
its  road  on  Wyoming  Street  between  Sixteenth  and  Nineteenth 
Streets,  provided  the  necessary  consents  of  property  owners 
are  obtained. 

DISMISSAL   OF    CASES    NOW    PENDING    BETWEEN    CITY 

AND  COMPANY. 

Section  20.  All  cases,  civil  or  criminal,  between  any  of 
said  Street  Railway  Companies  and  the  City  growing  out  of 
the  contention  about  watchmen  and  paving  between  the  tracks 
of  its  roads,  shall  be  dismissed  at  the  cost  of  the  Companies, 
upon  the  acceptance  of  the  terms  of  this  ordinance. 

EXISTING   RIGHTS  AND   OBLIGATIONS   OF   COMPANIES 
NOT  ALTERED  HEREBY.— RIGHTS  OF  CITY  PRESERVED. 

iSECTiON  21.  Nothing  in  this  ordinance  shall  limit  the 
rights  or  obligations  of  either  of  said  companies,  under  exist- 
ing franchises,  or  the  rights  of  the  city,  except  as  herein  speci- 
fied, and  except  so  far  as  the  doing  of  the  acts  provided  for 
herein  may  affect  the  same. 

FAILURE  OF  COMPANIES  TO  PAY  8  PER  CENT.— RIGHT 
OF  CITY  TO  COLLECT  16  PER  CENT  AND  TAKE  POS- 
SESSION OF  ALL  PROPERTY  OF  COMPANIES. 

iSECTiON  22.  If  said  Company  or  Companies  at  any  time 
or  times  during  the  life  of  this  ordinance  shall  fail  to  pay  the 
City  the  sums  due  it  of  said  eight  per  cent,  or  any  part  thereof, 
within  thirty  days  after  it  shall  become  due,  then  the  City 
shall  have  the  right  from  time  to  time  by  its  officers  to  take 
possession  of  all  the  property  of  said  companies  in  Jackson 
County,  Missouri,  and  to  run,  manage  and  operate  said  road 
or  roads  until  said  City  shall  collect  the  sum  which  may  be 
due  it;  in  the  event  said  Company  or  Companies  shall  so  neg- 
lect to  pay,  then  it  or  they  shall  for  the  period  of  time  in 
which  it  or  they  may  be  in  default  pay  sixteen  per  cent  less 
twice  the  deductions  hereinbefore  provided,  instead  of  said 
eight  per  cent  as  hereinbefore  provided,  and  it  is  herein  also 
provided  that  said  per  cent  so  to  be  paid  from  time  to  time 
shall  hold  and  bind  all  the  property  of  said  Company  or  Com- 
panies with  like  force  and  effect  as  a  general  tax. 

RIGHT   OF   COMPANY   TO   BUILD    NEW    LINES.— ^ONDI- 
TIONS  OF  GRANT. 

Section  23.  The  right  is  hereby  granted  to  the  Metro- 
politan Street  Railway  Company  to  go  upon  the  streets  of  the 


100  The  Peace  Agreement. 

City  for  the  purpose  of  making  the  extensions  heretofore  re- 
ferred to  and  to  construct  its  tracks  and  operate  its  road  upon 
said  streets  as  above  set  forth,  said  right  to  construct  and 
operate  said  road  shall  be  subject: 

(a)  To  all  the  provisions  of  this  ordinance. 

(b)  The  Metropolitan  Street  Railway  Company,  its  sue- 
cessors  and  assigns,  shall  have  the  right  and  authority  to  go 

ry^  upon  the  streets  and  parts  of  streets  designated  herein  and 
^S  make  such  excavations  therein  as  may  be  necessary  for  the 
construction  and  completion  of  said  street  raihvay  extensions 
and  electrifications;  provided,  however,  that  said  Company 
shall  first  procure  from  the  Superintendent  of  Streets  or  such 
other  officer  as  the  City  may  autho7ize  to  issue  the  same,  a 
permit  to  do  so  hefo7^e  entering  upon  and  making  any  excava- 
tion in  said  streets.  And  shall  have  the  further  right  and 
authority  to  make  track  connections  with  the  car  barns,  power 
houses,  track  with  track,  at  points  of  intersection,  and  shall 
also  have  the  right  to  conduct  their  electrical  power  over 
feeder  wires  from  the  power  stations  to  said  lines  of  street 
railway;  provided,  however,  that  the  route  thereof  and  loca- 
tion of  carrying  poles  and  ducts  therefor,  and  all  lateral  and 
switch  tracks  shall  first  be  approved  by  the  Board  of  Public 
Works;  and  the  Council  may  by  reasonable  ordinance  regulate 
said  matters,  and  provided,  further,  that  in  conducting  and 
repairing  said  lines  said  Street  Railway  Company,  its  success- 
ors and  assigns,  shall  restore  and  leave  the  streets  which  it 
may  disturb  by  the  construction  in  as  good  condition  as  they 
were  at  the  time  of  commencing  such  work. 

Any  pavement  outside  of  the  rails  of  said  track  that  may 
be  disturbed  or  taken  up  by  the  said  Company  in  the  con- 
struction, reconstruction  or  repair  of  its  railway  shall  be  re- 
newed and  reconstructed  and  put  in  as  good  condition  as  it 
was  formerly. 

All  paving,  repaying,  construction,  reconstruction  and  re- 
pairing shall  be  done  to  the  satisfaction  and  approval  of  the 
City. 

(c)  All  pavements  shall  join  up  to  the  rails  as  closely 
as  possible,  and  be  so  kept  that  the  wheels  of  ordinary  vehicles 
will  not  in  running  along  the  rails  drop  between  the  pavement 
and  the  rails;  and  the  upper  surface  of  the  pavement  at  yts 
juncture  ivith  each  rail  shall  be  as  nearly  as  practicable  on 
the  same  lever  as  the  upper  surface  of  the  rail.  The  general 
^surface  of  the  pavement  between  the  rails  to  be  as  high  as^the 
pavement  ust  outside  the  tracjk,  except  that  there  may  be 
next  to  the  surface  of  the  flange  of  the  rails  such  bevel  or 


'THE  Peace  Agreement.  lOi 

curve  as  may  be  necessary  to  have  a  proper  juncture  of  the 
pavement  with  the  upper  surface  of  the  flange  of  the  rail. 

EXPRESS  RESERVATION  BY  THE  CITY  OF  RIGHTS  OF 
REGULATION  AND  CONTROL  FIXED  BY  THE  CITY 
CHARTER. 

Section  24.  Nothing  in  this  contract  shall  take  away 
from  the  City  any  right  or  potver  as  to  regulation  and  control 
of  any  line  of  said  companies  reserved  in  the  charter  of  the  §24 
City  and  which  now  exists,  hut  any  such  right  or  potver  shall 
continue  as  it  existed  at  the  time  of  making  this  contract. 
Neither  is  it  intended  to  take  away  the  rights  of  the  Company 
as  heretofore  existing,  except  as  they  are  herein  expressly  or 
by  acts  done  hereunder  changed,  modified,  qualified,  affected 
or  abrogated,  but  except  as  aforesaid  such  rights  shall  con- 
tinue as  they  existed  at  the  time  of  making  this  contract;  pro- 
vided, however,  that  the  City  shall  make  no  regulation  as  to 
any  extension  which  it  does  not  have  the  right  to  make  as  to 
the  main  line  which  has  been  so  extended  under  the  provisions 
hereof.  The  Company  shall  carry  passengers  over  the  exten- 
sions and  the  main  line  for  the  fare  charged  on  said  main 
lines,  with  full  transfer  privileges. 

GRADING  AND  RE-GRADING  STREETS.— WAIVER  OF 
DAMAGES  BY  COMPANIES. 

Section  25.  Whenever  pursuant  to  the  authority  of  Kan- 
sas City,  Missouri,  any  part  of  the  route,  upon  which  said 
Company  or  their  successors  or  assigns  shall  construct  or  may  §11 
have  constructed,  their  lines  shall  he  graded  or  re-graded,  the 
said  grantees  of  this  ordinance,  their  successors  or  assigns,  at 
their  own  expense,  agree  for  themselves,  their  successors  or 
assigns,  to  construct  and  lay  their  tracks  upon  the  street  as 
re-graded,  and  shall  waive  all  claims  for  damages  for  such  re- 
grading  or  change  of  grade. 

INDEMNITY  CLAUSE.— COMPANIES  TO  HOLD  CITY 
HARMLESS  FROM  DAMAGES. 

Section  26.  In  constructing,  repairing  and  operating  said 
street  railways,  said  Companies  shall  use  every  reasonable  and  ^]^2 
■proper  precaution  to  avoid  darriage  to  person  of  property,  and 
shall  at  all  times  respund  to  the  City  of.  Kansas  City  for  and 
save  'it  .harmless:: from  all- and  every  damage,  injury  or  loss, 
cost  or  expense,  caused  or  occasioned  by  reason  of  any  act  or 
omission  of  said  companies  in  the  constructing,  reconstruct- 


102  The  Peace  Agreement. 


repairing  or  operating  of  said  railways,  or  in  paving, 
re-paving  or  repairing  said  streets,  or  by  reason  of  any  and 
every  act  done  under  this  ordinance. 

.     LOCATION  OF  CARRYING  POLES  AND  WIRES.— AP- 
PROVAL BY  BOARD  OF  PUBLIC  WORKS. 

Section  27.  The  location  of  carrying  poles  and  wires 
and  the  kind  and  character  of  same  upon  the  extensions  and 
§1  a  electrifications  referred  to  shall  he  first  approved  by  the  Board 
of  Public  Works.  The  Railway  Companies  herein  named,  their 
successors  or  assigns,  after  having  excavated  or  incumbered 
any  street  or  part  thereof,  shall  at  once  restore  and  leave  the 
same  in  as  good  condition  as  it  was  at  the  time  of  commencing 
such  work,  and  shall  pave  as  aforesaid.  The  central  line  of 
the  spaces  between  the  tracks  of  said  railways  shall  coincide, 
as  nearly  as  practicable,  ivith  the  central  line  of  the  streets 
on  which  same  is  located;  and  the  space  between  the  inside 
rails  of  the  tioo  tracks  shall  be  as  directed  by  the  City  Engi- 
neer and  the  Board  of  Public  Works,  on  streets,  and  on  boule- 
vards, by  the  Park  Board. 

LIABILITY    OF    COMPANIES    FOR    INJURY    TO    WATER 
PIPES,  TREES  OR  OTHEI^  PROPERTY. 

Section  28.    Said  Companies  shall  not  in  the  construc- 
tion, maintenance  or  operation  of  any  of  its  roads  or  power 
o-iA  plants  do  or  permit  anything  to  be  done  whereby  the  ivater 
^       pipes  or  conduits  or  other  property  of  the  City  or  the  trees 
along  the  streets  of  the  City  shall  be  damaged,  and  the  Com- 
panies shall  respond  for  such  damages  to  the  city. 

PROVISIONS  OF  THIS  CONTRACT— WHAT  LINES  COV- 
ERED BY— DURATION  OF  PRIVILEGES  HEREIN 
GRANTED. 

Section  29.  The  provisions  of  this  contract  shall  apply 
to  all  lines  of  street  railway  in  Kansas  City,  Missouri,  as  the 
limits  of  said  City  are  now  established  or  may  hereafter  be 
enlarged,  which  are  owned,  operated  or  controlled  directly  or 
indirectly  by  the  corporations  herein  named,  their  successors 
or  assigns.  It  being  the  understanding  on  the  representation 
of  the  three  Companies  named  herein  that  they  control,  own 
and  operate  all  of  the  lines  of  street  railway  now  in  operation 
in  Kansas  City,  Missouri,  excepting  a  dummy  railroad  run- 
ning in  a  southerly  direction  from  Westport  to  Dodson,  and 
Qommonly  known  as  the  "Winner**  or  "Blair"  road,  it  being 


The  Peace  Agreement.  103 

the  intention  to  specially  contract  with  reference  to  and  bind 
all  the  properties  above  referred  to. 

The  time  for  which  the  privilege  is  granted  to  which  said 
extensions  and  new  lines  of  the  systems  shall  run  shall  be  to 
June  first,  1925,  subject  to  the  provisions  of  this  ordinance. 

RESERVATION  BY  CITY  OF  RIGHT  TO  PERMIT  OTHER 

COMPANIES  TO  USE  THREE  BLOCKS  OF 

COMPANIES'  TRACKS. 

Section  30.  The  City  of  Kansas  City  expressly  reserves 
the  right  as  to  the  extensions  herein  provided  for  to  allow  and 
permit  any  other  street  railway  company  to  run  cars  oper-gl5 
ated  solely  by  it  over  and  along  the  tracks  of  such  extensions 
for  the  distance  of  three  consecutive  blocks,  or  less,  on  such 
terms  and  with  and  for  such  compensation  to  said  Company 
as  may  be  prescribed  and  determined  by  a  reasonable  ordi- 
nance. '  ^W.W 

ORIGINAL  THREE  BLOCK  CLAUSE  PRESERVED. 

Sec.  30a.  Nothing  in  this  ordinance  contained  is  intended 
to  or  shall  be  held  or  construed  in  any  ivay  to  abndge  any 
right  which  may  exist  under  existing  ordinances  of  other  com- 
panies to  use  the  tracks  of  each  of  the  Companies,  parties  to 
this  agreement,  for  three  (3)  consecutive  blocks  of  the  lines 
of  any  said  companies,  nor  to  run  over  and  use  the  tracks  of 
the  so-called  Delaware  and  Main  Street  loop. 

FURTHER  SECURITY  AND  INDEMNITY  TO  CITY.— CASH 
DEPOSIT  BY  COMPANIES. 

Section  31.  Whenever  the  Railway  Companies  fail  or 
refuse  to  comply  ivith  any  of  their  obligations  hereunder,  the 
City  shall  have  the  right  in  addition  to  the  other  rights  and 
remedies  expressly  or  by  law  reserved  to  it,  to  do,  or  cause  ^o§33 
be  done,  the  things  required  hereby  to  be  done  by  the  Street 
Raihvay  Companies  and  the  City  shall  have  the  right  to  collect 
from  the  Companies  and  the  Companies  shall  be  liable  to  the 
City  for  all  the  cost  ami  expense  thereof,  including  cost  of 
suit  The  Companies  shall  deposit  tvith  the  City  Treasurer  the 
sum  of  fifteen  hundred  dollars  ($1,500.00)  for  the  faithful 
compliance  with  this  section.  And  as  often  as  any  portion  of 
said  sum  is  used  by  the  Board  of  Public  Works  in  fulfilling  the 
obligations   of  the   Companies,   the   said   Companies   shall,   on 


104  The  Peace  Agreement. 

notice  from  said  Board  of  Public  Works,  deposit  a  correspond- 
ing sum  with  the  City  Treasurer. 

Amend  Section  Thirty-two  (32),  so  that  it  shall  read  as 
follows : 

Section.  32.  Whenever,  in  this  ordinance,  it  is  provided 
that  the  Company  or  Companies  shall  remove  tracks  from  any 
^--  street,  it  is  understood  that  as  soon  as  said  tracks  are  re- 
§^^  moved,  as  herein  provided,  that  all  of  the  rights  of  the  Com- 
pany upon  the  parts  of  the  streets  so  abandoned  shall  immedi- 
ately cease. 

And  it  is  further  agreed  that,  whenever  the  Companies 
have  heretofore  removed  their  tracks  from  any  street  and 
abandoned  the  same,  that  said  companies  no  longer  possess 
any  right  in  the  parts  of  the  streets  so  abandoned. 

And  it  is  further  agreed  that,  whenever  any  of  the  Street 
Railway  Companies  shall  cease  to  regularly  operate  its  cars 
over  any  track,  .or  portion  thereof,  in  good  faith,  and  as  in 
this  ordinance  provided,  it  shall  be  deemed  to  have  abandoned 
the  same,  and  shall  remove  its  tracks,  poles,  wires,  cables, 
conduits,  and  other  property  therefrom;  and  shall  restore  the 
portion  of  the  street  disturbed  and  the  paving  thereof  to  a 
condition  satisfactory  to  the  City  Engineer,  failing  in  which, 
the  City  may  make  such  removal  of  the  tracks  and  restoration 
of  the  streets,  at  the  cost  and  expense  of  the  Street  Railway 
Conipany. 

ACCEPTANCE  OF  THIS  ORDINANCE  BY  COMPANIES. 


§24 


Section  33.  Said  Companies,  and  each  of  them,  shall, 
within  seventy-two  hours  after  the  passage  of  this  ordinance, 
cause  a  resolution  of  its  Board  of  Directors  to  be  passed  ac- 
cepting the  provisions  of  this  ordinance  and  agreeing  to  abide 
and  comply  with  the  requirements  thereof.  And  each  shall 
file  with  the  City  Clerk  a  copy  of  said  resolution,  attested  by 
the  hand  of  its  Secretary,  with  the  seal  of  the  Company  affixed 
thereto,   within  seventy-two  hours  after  its   passage. 

EXTENSION  Ot  TIME  FOR  COMPLETION  OF  WORK. 

Section  34.  Whereas,  the  negotiations  with  reference  to 
this  contract  were  begun  the  first  day  of  June,  1902,  it  is 
agreed  that  the  Company  shall  be  entitled  to  extensions  of 
time  equal  to  the  number  of  practicable  working  days  lost 
between  the  first  day  of  June,  1902,  and  the  date  this  ordi- 
nance becomes  a  law  within  which  to  complete  the  improve- 
ments aforesaid. 


The  Peace  Agreement.  105 

REMOVAL  OF  TRACKS  FOR  BUILDING  SEWERS,  OR 
OTHER  PUBLIC  WORK.— COMPANY  TO  BEAR  EX- 
PENSE  THEREOF. 

Section  35,  Whenever  it  shall  he  necessai-y  to  remove 
the  tracks  or  the  rails  of  the  tracks  of  any  of  said  street  rail- 
way lines  for  the  purpose  of  laying  or  repairing  tvater  pipes, 
constructing  seivers,  or  for  any  public  purpose  whatever,  the  ejg 
said  Company  shall  promptly,  iipon  notice  from  the  City,  re- 
move  said  tracks  and  replace  the  same  at  their  own  expense; 
provided,  hoivever,  that  the  city  in  doing  said  work  shall  use 
all  reasonable  expedition  so  as  to  interrupt  travel  upon  said 
roads  as  little  as  is  reasonably  possible. 

TRACKS  TO  BE  LAID  ON  ESTABLISHED  GRADES. 

Section  36.     It  is  understood  tlmt  all  street  railway  tracks 
constructed   under   the   privileges   granted    by    this    ordinance  g^y 
shall   be   laid   upon   the   established   grades   of   the   respective  ^ 
streets.    The  city  shall  establish  such  grades  where  none  have 
been  established,   when  requested  by  the  Companies. 

FORFEITURE  FOR  VIOLATION  OF  THIS  OR  ANY  OTHER 
LAWFUL  ORDINANCE. 

Section  37.  If  any  of  the  railway  Companies  shall  at 
any  time  fail,  neglect  or  refuse  to  obey  and  comply  with  any  g^^ 
of  the  provisions  of  this  ordinance  or  any  lawful  ordinance  of  ^ 
Kansas  City,  then  in  addition  to  the  rights  and  remedies  of 
the  City  now  possessed  by  general  law  or  otherwise,  the  said 
Companies  shall  forfeit  all  rights,  powers  and  privileges  by 
this  ordinance  granted  and  conferred  and  this  ordinance  shall 
be  null  and  void.  Provided,  that  the  Company  shall  have  the 
right  to  contest  the  validity  of  any  such  other  ordinance,  and 
in  that  case  there  can  be  no  forfeiture  unless  the  Company 
refuses  to  obey  the  same  after  the  validity  has  been  finally 
decided. 

COURT  PROCEEDINGS  TO  ENFORCE  FORFEITURE. 

Such  forfeiture  may  be  had  by  proceedings  instituted  by 
the  City  in  its  own  name  in  a  court  of  record  of  Jackson  jCoun- 
ty,  Missouri,  or  in  any  other  proceeding  in  any  court  of  com- 
petent jurisdiction  brought  by  the  City  or  any  lawful  author- 
ity. The  failure  of  said  Street  Hallway  Company  to  obtain  the 
requisite  consents  of  the  property  holders  for  the  construction 
of  any  of  the  extensions  herein  provided  for  shall  not  affect 


106  The  Peace  Agreement. 

the  obligation  of  said  companies  to  pay  the  eight  per  cent  of 
the  gross  earnings  herein  stipulated  to  be  paid,  nor  shall  it 
affect  any  of  the  other  provisions  of  this  ordinance,  except 
in  so  far  as  they  shall  apply  to  the  extensions  to  which  such 
consent  cannot  be  obtained.  And  if  there  shall  be  a  failure  in 
any  case  to  obtain  such  consents  for  any  extension  or  new 
line,  the  Company  shall  not  be  required  to  build  the  same. 

IN   ADDITION   TO   OTHER   RIGHTS   UPON    FAILURE   OF 
COMPANIES  TO  COMPLY  WITH  THIS  ORDINANCE, 
CITY  TO  HAVE  THE  RIGHT  TO  TAKE  POS- 
SESSION OF  ENTIRE  PROPERTY  OF  COM- 
PANY AND  COLLECT  $250,000  AS 
LIQUIDATED  DAMAGES. 

Provided,  further,  that  if  said  Companies  or  either  of 
them  shall  fail,  neglect  or  refuse  to  build  said  extensions,  or 
any  of  them,  and  said  Swope  Park  line  and  the  new  lines 
provided  for  herein,  within  the  time  and  in  the  manner  herein 
specified  (subject,  however,  to  the  extensions  of  time  and 
emergencies  referred  to  herein),  then,  in  addition  to  the  for- 
feiture above  provided  for,  the  City  shall  have  the  right  from 
time  to  time  by  its  officers  to  take  possession  of  all  the  prop- 
erty of  said  Companies  in  Jackson  County,  Missouri,  and  to 
run,  manage  and  operate  all  of  said  lines  of  road  until  the 
Gity  shall  collect,  in  addition  to  the  sums  specified  in  Section 
22  hereof,  the  sum  of  $250,000,  over  and  above  the  expenses 
of  the  operation  of  said  road,  as  and  for  liquidated  damages, 
which  sum  is  herein  agreed  upon  as  the  damage  which  the*City 
shall  suffer  by  reason  of  such  failure;  said  sum  being  agreed 
upon  because  it  is  deemed  impossible  to  accurately  fix  a  stand- 
ard or  measure  of  damage. 

'  Provided,  further,  that  the  city  may  in  any  other  manner, 
arid  by  any  legal  means,  otherwise  enforce  the  payment  and 
collection  of  said  sum  of  ^250,000;  but  the  seizing  of  said  road 
or  the  collection  of  $250,000  shall  not  take  away  from  the 
city  the  right  to  enforce  all  of  the  rights  of  forfeiture  afore- 
said. 

EXPIRATJON  OF  RIGHTS  GRANTED  BY  JACKSON 

COUNTY. 

-  .  Section  88.  .  All  rights  and  franchises  of  said  Companies, 
6r  either  of  them,  no  matter  how  acquired,  which  do  not  ex- 
pire on  or  before  June  1,  1925,  to  run  or  operate  street  cars  on 
any  street  or  highway,  or  part  thereof  which  may  be  embraced 


The  Peace  Agreement.  107 

within  the  corporate  boundaries  of  the  City  of  Kansas  City, 
on  June  1,  1925,  shall,  by  virtue  of  this  contract,  expire,  cease 
and  determine  on  said  June  1,  1925. 

SPECIAL  FIRE  PRESSURE  SYSTEM. 

Section  39.  As  soon  as  the  City  shall  have  constructed 
its  special  fire  pressure  water  system  between  Fourteenth 
Street  and  the  river,  and  Washington  Street  and  Oak  Street, 
the  Company  shall,  during  the  life  of  this  contract,  free  of 
cost,  but  at  the  risk  of  the  city,  furnish  convenient  to  its 
power  house,  such  power  as  may  be  necessary  to  operate  the 
special  fire  pumps,  not  exceeding  500  horse  power,  to  the  city, 
to  be  used  in  case  of  fire;  with  also  the  men  necessary  to  start 
up  and  shut  down  the  pump  motors  at  such  times  as  the  City 
shall  indicate. 

WATER  MAIN  PRIVILEGE  JAMES  STREET  BRIDGE  OVER 

KAW  RIVER. 

Section  40.  The  Company  shall  permit  the  City,  free  of 
cost,  at  any  time  prior  to  1925,  to  lay  one  or  more  water  mains 
over  its  bridge  across  the  Kansas  River  at  or  near  James 
Street;  provided,  that  the  safety  of  the  bridge  is  not  impaired 
thereby,  and  the  City  shall  have  the  right  to  stren^hen  said 
bridge  if  it  desires. 

REPEALING  CLAUSE. 

Section  41.  All  ordinances  or  parts  of  ordinances  in 
conflict  hereivith  are  only  in  so  far  as  they  conflict  hereby 
repealed,  but  all  obligations  of  every  kind  and  character  m§32 
favor  of  the  City  now  existing,  except  in  so  far  as  they  are 
hereby  modified  or  repealed,  shall  continue  in  full  force  and 
effect. 

Passed  May  25,  1903. 

J.  P.  Lynch, 
Speaker  Lower  House  of  the  Common  Council. 

Passed  May  25,  1903. 

Geo.  M.  Shelley, 
President  Upper  House  of  the  Common  Council. 
Attest:  Approved  June  2nd,  1903. 

(Seal)  Baxter  Brown,  City  Clerk.      Jas.  A.  Reed,  Mayor. 

The  Metropolitan  Street  Railway  Company,  the  Kansas 
City  Elevated  Railway  Company  and  the  Central  Electric  Rail- 
way Company  hereby  accept  the  provisions  of  foregoing  ordi- 
nance number  22780,  and  agree  to  abide  by  and  comply  with 
the  requirements  thereof. 

Pated  this  June  3,  1903. 


i(J8  Philadelphia  Rate  Decision. 


IN  THE  SUPREME  COURT  OF  PENNSYLVANIA. 
EASTERN    DISTRICT. 


City  of  Philadelphia, 

Appellant, 
vs. 

The  Philadelphia  Rapid  Transit 
.  Company. 


No.  45. 
January  Term,  1909. 
Appeal  by  plaintiff  from 
the  final  decree  of  the 
Court  of  Common  Pleas 
No.  5,  of  Philadelphia 
County.  Sitting  in 
Equity. 

Filed  April  26,  1909.     Stewart,  J. 

Prior  to  the  organization  of  the  Philadelphia  Rapid  Tran- 
sit Company,  here  the  appellee,  the  lines  of  street  railways  in 
the  City  of  Philadelphia  were  owned  and  operated  by  several 
independent  companis.  With  a  viw  to  unify  these  to  the  ex- 
tent of  bringing  them  under  a  common  system  and  manage- 
ment, the  Philadelphia  Rapid  Transit  Company  by  lease  and 
othel-wise  acquired  control  of  all  of  them.  This  control,  while 
it  allows  each  company  to  retain  its  separate  existence,  com- 
mits to  the  Traction  Company  the  operation,  management,  and 
regulation  of  each  line  of  railway.  The  several  companies 
differed  bith  in  their  charter  rights,  and  in  their  municipal 
privileges  and  obligations  as  well.  To  maek  these  latter  fixed, 
fair  and  uniform,  to  supersede  former  regulations,  and  to 
define  and  regulate  the  relations  thereafter  to  be  observed 
between  the  City  and  the  railways — so  reads  the  agreement 
— the  contract  of  July,  1907,  was  entered  into  between  the 
City  and  the  Traction  Company.  In  its  entirety  the  contract 
does  not  concern  us.  It  is  quite  enough  to  say  of  it  that  the 
advantages  derived  thereunder  are  reciprocal.  It  is  only  the 
rimitation  imposed  by  a  proviso  in  the  contract  on  the  right  of 
the  Company  to  change  the  rates  of  fare  that  calls  for  con- 
sideration here.  The  proviso  is  as  follows:  "Provided,  hoiv- 
eVer^  Tha^^^  of  fare  may  be  chanored  from 

"tim^  ^6  y^fee,  but  only  %ith  the  consent  of  both  parties  here- 
to.-' 'At  the  time  the  contract  was  entered  into,  the  regular 
■fare  charged  oii  each  line  for  a  continuous  ride  in  the  same 
car,  irrespective  of  distance  traveled,  whether  for  a  square  or' 
to   the   terminus,    was   five   cents.      This    fare    was    uniform 


I^HILADELPHU   RATE   DECISION.  109 

throughout  the  city.     For  reasons  of  its  own,  not  that  it  was 
compelled  by  law  or  ordinance  to  do  so,  the  Traction  Company 
had  been  accustomed  to  offer  to  the  public  cards  or  slips  con- 
taining   six    printed,    detachable    tickets,    each    enttiling    the 
holder  to  a  single  continuous  ride,  for  twenty-five  cents.    Each 
ticket  was  regarded  as  the  equivalent  of  a  five-cent  fare,  and 
secured  to  the  holder  the  same  privileges.     In  addition,  the 
Company  had  in  force  at  the  date  of  the  contract  a  system  of 
free   transfers   which   allowed    one   who   paid    a   single   fare, 
whether  in  cash  or  by  ticket,  to  complete  his  ride  on  certain 
connecting   roads   without   further   charge.      For   reasons   not 
necessary  to  discuss,  the  Traction  Company  has  since  the  date 
of  the  contract  discontinued  such  privilege  when  the  fare  is 
paid  by  ticket,  and  allows  it  only  in  cases  where  a  cash  fare 
has   been   paid.     The  bill   complains  that   this   action   of  the 
Company  is  a  change  in  its  established  rates  of  fare  in  force 
when  the  contract  was  entered  into,  inasmuch  as  it  requires 
now  a  cash  payment  of  five  cents  to  secure  the  same  transfer 
ride  which  before  could  be  had  on  a  ticket  costing  but  four 
and  one-sixth  cents;  and  since  the  change  was  made  without 
the  consent  of  the  City,  an  injunction  was  asked  for  to  re- 
strain  the    Company   from   discriminating   in   the    way    indi- 
cated.   The  question  thus  presented  is  a  very  narrow  one.  The 
expression  "rates  of  fare"  as  used  in  the  proviso  is  more  or 
less  inapt,  and  therefore  lacks  definiteness.     We  are  not  aided 
in  its  interpretation  by  anythin  gelsewhere  appearing  in  the 
contract.     The   proviso   is   left  to   speak   for   itself.      Strictly 
speaking,  the  Traction  Company  had  no  established  rates  of 
fare  when  it  entered  into  this  contract.    A  rate  is  the  measure 
of  a  thing  by  its   ratio   or  relation  to   some   fixed   standard. 
When  a  certain  sum  is  determined  for  a  particular  service, 
unless  it  is  proportional  and  comparative  according  to  a  rec- 
ognized standard,  it  is  not  a  rate,  but  a  charge.     The  com- 
pensation which  this  Company  was  accustomed  to  receive  for 
the   facilities   it   afforded   had   relation   to   no   standard.      The 
five-cent  fare  for  one  continuous  ride  was   not  measured  by 
distance   traveled   or   anything   else   that   would   suggest   pro- 
portion; and  the  same  must  be  said  of  every  other  fare  it  re- 
quired.    None  of  them  were  determined  by  ratio.     It  is  quite 
evident,  however,  that  the  reference  in  the  proviso  was  to  the 
charges  and  fares  the  Company  was  receiving  at  the  date  of 
the  contract;  it  could  be  to  nothing  else.     Accepting  this  as 
the  meaning,  it  is  necessary  first  to  inquire  what  these  sev- 
eral charges  were.     We  have  referred  to  one — five  cents  for  a 
single  continuous  ride  in  the  same  car.     Another  was,  eight. 


110  Philadelphia  Rate  Decision. 

cisnts  for  a  single  change  from  one  car  to  another  on  certain 
intersecting  lilies.  It  is  not  defined  that  these  charges  fall 
within  the  meaning  of  the  proviso.  No  attempt  has  been 
made  to  change  these  in  any  particular.  It  is  contended  that 
there  was  also  a  third  charge,  distinguishable  from  these 
mentioned,  which  also  falls  within  the  proviso,  viz.:  twenty- 
five  cents  for  six  ticekts  when  purchased  together,  each  ticket 
being  the  equivalent  of  a  five-cent  cash  fare  and  entitling  the 
holder  to  equal  service.  It  must  be  conseded,  we  think,  that 
if  there  was  a  distinct  charge  within  the  contemplation  of  the 
parties,  the  change  that  is  complained  of  with  respect  to  it 
would  be  violative  of  the  terms  of  the  contract,  since  the  ticket 
is  no  longer  the  full  equivalent  of  a  five-cent  fare,  in  that 
it  will  not  now  purchase  the  same  facilities  in  the  way  of 
transfer.  The  question  is,  was  it  such  a  charge?  The  case 
turns  upon  the  answer.  The  sum  of  twenty-five  cents  dis- 
tributed upon  six  tickets  makes  the  cost  of  each,  considered 
separately,  four  and  one-sixth  cents.  This  simple  statement 
would  seem  to  show  such  a  reduction  in  cost  to  the  purchaser 
as  would  warrant  a  conclusion  that  the  Company  had  two 
chares  for  the  same  service,  that  is  the  continuous  ride,  one 
five  cents  and  another  four  and  one-sixth  cents.  But  this 
method  of  differentiating  does  not  express  the  whole  truth  as 
we  need  to  know  it  for  a  proper  determination  of  the  question. 
Clearly  the  four-ando-en-sixth-cent  charge  is  not  all  the  Com- 
pany exacts  in  the  way  of  payment  when  it  sells  by  ticket. 
One  ticket  cannot  be  purchased  for  that  sum.  In  order  to  get 
one  the  purchaser  must  buy  six,  and  pay  twenty-five  cents 
before  he  gets  any  service  whatever  in  return.  It  results  that 
the  Company  gets  the  benefit  of  this  advance  payment  without 
interest.  Where  all  the  six  tickts  are  used  promptly,  the  ad- 
vantage deriver  by  the  Company  in  this  respect  may  be  too 
slight  to  be  considered ;  but,  as  every  one  knows,  all  are  not 
used  promptly;  and  it  is  not  mere  speculation  to  say  that  the 
general  average  would  show  a  very  substantial  benefit  enur- 
ing to  the  Company  from  this  source,  an  advantage  which 
^  could  be  very  fairly  regarded  as  the  ful  lequivalent  of  the 
amount  abated.  Whatever  the  Company  gains  in  this  way  is 
at  the  cost  of  the  party  purchasing,  of  course.  These  consid- 
erations would  indicate  that  in  adopting  this  charge  for  tickets 
the  Company  had  no  intention  of  departing  from  the  five-cent 
standard  charge  for  a  continuous  ride;  but  that  what  was 
intended,  and  all  that  was  intended,  was  an  equitable  adjust- 
ment on  the  basis  of  a  five-cent  fare  for  a  continuous  ride, 
which  would  advantage  its  patrons  in  the  way  of  convenience 


Philadelphia  Rate  Decision.  Ill 

without  entailing  loss  upon  the  Company.  If  any  other  pur- 
pose controlled,  it  is  not  apparent  what  it  was.  The  Company 
was  all  the  while  adhering  to  this  five-cent  charge  for  the 
general  public.  The  ticket  arrangement  was  one  of  its  own 
devising,  adopted  not  because  forced  upon  it,  but  at  its  own 
pleasure.  If  the  purpose  was  to  reduce  the  charge,  the  ques- 
tion at  once  arises,  to  what  end?  It  will  hardly  be  contended 
that  it  was  to  gratify  a  generous  impulse  prompted  by  an 
over  abundant  income.  No  more  can  it  be  supposed  that  it 
was  done  with  a  view  to  increase  the  Company's  revenues 
through  an  enlarged  traffic.  The  average  individual  would 
not  be  likely  to  take  more  rides  during  a  month  or  year  be- 
cause of  the  reduction  of  five-sixth  of  a  cent  upon  each  ride. 
It  is  quite  as  inconceivable  that  its  purpose  was  to  give  indi- 
viduals who,  without  inconvenience  to  themselves,  could  spare 
twenty-five  cents  at  any  time,  the  advantage  of  a  lower  fare 
than  was  charged  those  who  could  conveniently  spare  not  more 
than  five  cents  each  time  they  travel.  The  only  reasonable 
explanation  is  that,  in  adopting  the  ticket  system,  the  object 
was  to  afford  an  additional  convenience  for  a  consideration 
in  the  way  of  advance  payment,  which  would  equal  the 
amount  of  abatement  in  the  fare  in  dollars  and  cents.  Indeed, 
we  think  it  so  evident  that  the  purpose  of  the  ^Company  was 
to  adhere  to  the  five-cent  charge  as  a  basis  that  we  are  unable 
to  see  how  the  complainant  in  contracting  with  the  Company 
with  respect  to  the  matter  of  its  fares  could  have  any  reason 
to  suppose  that  the  ticek  system  introduced  any  other.  It  is 
only  by  supposing  that  the  understanding  of  the  parties  with 
respect  to  it  was  wholly  different  from  what  the  transaction 
on  its  face  imparts  as  to  its  meaning  and  purpose  that  wq 
can  read  this  ticket  system  into  the  terms  of  the  proviso,  and 
there  is  nothing  in  the  case  as  presented  that  would  give  us 
warrant  for  so  doing.  If,  then,  it  is  not  "a  rate  of  fare"  with- 
in the  meaning  of  the  proviso,  but  a  mere  regulation  of  the 
convenience  of  the  public  involving  no  change  in  charge — 
and  this  is  our  conclusion — it  folloWs  that  the  Traction  Com- 
pany in  restricting  its  application  in  the  manner  complained 
of  was  strictly  within  its  rights,  and  the  concurrence  of  the 
City  was  not  required. 

The  decree  is  affirmed  and  the  bill  dismissed  at  the  costs 
of  appellant. 


OF  THE 


The  man  who 

votes  for  such 

a  Franchise 

1 

1 

is  a  traitor  to 

AMERICAN 

DEMOCRACY 

—Judge  Ben  Lindsey,  of  Denver 

- 

r 

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